Last week, Nvidia (NVDA 0.37%) made news as the first business to ever exceed a $4 trillion market cap. Even if tariffs and competition caused investors to be concerned earlier this year, savvy investors saw its decline as a fantastic opportunity, and they have already been proven right.
Can you still become a millionaire by investing in Nvidia stock at its current extraordinary highs?
The massive AI opportunity
Best-in-class graphics processing units (GPU), which enable generative artificial intelligence (AI), propelled Nvidia to the top of the industry. It has existed for decades, but the gaming sector has mostly used its products. Demand has skyrocketed and this new opportunity is more substantial. After three years, Nvidia’s stock has increased 1,000%.
Over the next five years, Statista predicts that the AI opportunity will develop at a compound annual growth rate of 26.6%. More than any other firm, Nvidia might gain from that expansion. Because of its strong capabilities that are unrivaled in the chip business, it holds between 90% and 95% of the market for AI chips. Despite growing competition, the biggest and most lucrative contracts are landing on its platform.
However, it isn’t content to leave things that way, and it is now developing and introducing ever-more-powerful CPUs to support higher growth and additional generative AI capabilities. Its Blackwell architecture was introduced last year, and it is currently working with CoreWeave on its first contract to introduce the next generation of chips, known as Blackwell Ultra. Additionally, it has stock in CoreWeave, a provider of generative AI cloud solutions.
Large-language models (LLM), which are required to process the massive amounts of data required to enable generative AI, present Nvidia with enormous prospects in data centers and AI factories. The demand is booming, and in the fiscal first quarter of 2026 (which concluded on April 26), data center revenue grew 73% year over year, surpassing the 69% growth in total revenue. In the first quarter, there were 100 AI factories powered by Nvidia, which is twice as many as there were the previous year. Additionally, the average number of Nvidia processors in data centers was double that of the previous year.
Additionally, Nvidia is highly profitable. Wall Street is anticipating earnings per share of $4.29 in fiscal 2026, up from $2.99 the previous year, and it has a 52% profit margin as of the first quarter.
The path to millions
Despite the fact that Nvidia is a rapidly expanding firm, this does not guarantee that it will make you a multimillionaire. Naturally, it depends on where you start, and in a few years, half a million dollars may turn you into a millionaire. Even with $10,000 to invest, the average investor may not be able to become a millionaire with Nvidia stock due to its $4 trillion worth and slowing growth.
Turning $10,000 into $1 million indicates a 10,000% increase in value. When you consider that $4 trillion is growing 10,000%, it is obvious that this is not feasible for Nvidia’s stock.
It’s not going to be Nvidia if you’re searching for the next big thing. It is a good investment for long-term growth, though, and it may soon exceed $5 trillion. By the end of 2025, the stock price might have increased by 21% to $200, which would represent a market cap of $4.8 trillion. A diverse portfolio might benefit from the addition of this profitable stock.
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