We all want to be that investor who bought that big stock way back when — the one that made us a millionaire overnight. But honestly, this doesn’t have to be such a crazy notion.
In fact, the idea isn’t to find the company that no one else is buying yet. You could still reach that status by buying the stock at the right time and letting time and your investment inch your shares upwards.
This is why today we’re going to be taking a look at why Nvidia (NASDAQ:NVDA) could be that stock. Not only has the company created millionaires in the past, but it’s likely to do so again in the future. So, with that, let’s take a look at three things investors should know about Nvidia stock.
An innovator
Sure, Nvidia stock seems to be hitting the headlines again and again over the last few years. The thing is, it’s been around for over 30 years. The tech stock came on the scene in 1993, just as personal computers were starting to take off. Then in 1995, it launched the first mainstream consumer-oriented graphics processing card in the world. This made personal computers powerful, and fast.
From there, it became the leader in the graphics card space, growing from its small cap in 1999 to an insane US$1.51 trillion company today. As for shares during that time, investors who have somehow managed to hold onto Nvidia stock in that time have seen shares climb 133,269% as of writing!
However, that’s all in the past. Today, chips remain highly in demand, for one thing. But there is even more growth for Nvidia stock to get up against in the future.
Into AI
I’m sure you’ve noticed that Nvidia stock has been in the headlines more than most, as artificial intelligence (AI) has become a thing. And it turns out, that’s for good reason. The same computer processes used for its graphic cards can be used for AI as well. The bottom line? It just has to go through a lot of data, fast.
In fact, Nvidia stock has already been on the AI train for some time now. The company began experimenting with it back in 2012, building AI processors using its graphics card technology. Then, in 2016, it released the first deep-learning supercomputer.
Fast forward, and a whopping 75% of the company’s revenue is coming from AI. Yet demand doesn’t just remain high from current sources, it’s growing all the time. AI and automation need to be a part of basically every business in the future. And Nvidia is the key driver of companies achieving success.
More to come
So, if you think that Nvidia stock is going to be slowing down, think again. Researchers believe that its AI business will grow 24% on an annual basis all the way until 2030. That’s based on AI growth in general, which is likely to grow from US$200 billion in 2024 to US$1 trillion by 2032. And Nvidia stock continues to be in control of the lion’s share of the market.
Is it likely that we’ll see that absurd amount of growth again in the future? Probably not. However, long-term holders are still sure to be bullish on this stock. As AI rises, so too will Nvidia stock right along with it. But even outside AI, it remains a strong company that’s the best of the best and in high demand by companies around the world.
Therefore, if you see a short-term dip, take it. That dip could be what makes a large investment worth millions in the years to come.
