While watching stocks surge can be thrilling, the path to retirement isn’t about hitting it big with a single investment. Linking all your savings to one stock, like Tesla, which dropped 65% in 2022, could create unnecessary stress. Instead, allocating your funds sensibly, investing consistently, and remaining patient during market fluctuations can help you build a secure financial future. One stock that illustrates this principle well is Nvidia (NASDAQ: NVDA), which might just be a smart choice for aspiring millionaires.

Is it stock speculation or solid business growth?

Nvidia’s stock price has surged over 800% since the start of 2023. Such a dramatic increase might trigger fears of missing out among investors. Some people may chase after these momentum stocks, often confusing savvy investing with gambling. For long-term investors, understanding the company’s performance remains crucial.

The primary attraction for Nvidia stems from its potential in the booming field of artificial intelligence (AI). Besides promise, strong financial results back the stock’s rise—Nvidia’s revenue has grown over fourfold in the past two years. Its graphics processing units (GPUs) have set the standard, as numerous tech firms strive to harness and profit from generative AI technology.

Due to this impressive growth, an investment of $10,000 in Nvidia stock at the beginning of 2023 is now worth close to $92,000. Though such returns are rare, maintaining a position in Nvidia for the long haul could realistically lead many investors to millionaire status.

A broad customer base

Investors may wonder if Nvidia can sustain its growth rate. Even as growth has moderated, there are encouraging signs. Their first generation of GPU chips saw high demand, and although significant investment in AI infrastructure has been made, Nvidia plans to launch new products that should support ongoing revenue increase.

CEO Jensen Huang describes demand for their new Blackwell AI accelerator as “incredible.” As their new architecture begins production next year, the next generation, Rubin, is set to follow by 2026. Nvidia’s user-friendly CUDA software platform further solidifies customer loyalty by making it easier to utilize diverse GPU-accelerated systems, creating a robust ecosystem.

Image source: Getty Images.

Though spending from major tech companies may eventually slow down, the line for Nvidia’s products remains long. Despite quarterly revenue drops in Nvidia’s data center segment for five consecutive periods, this trend stabilized in the latest quarter, with a 17% revenue growth, an increase of 100 basis points from before.

Huang isn’t solely focused on corporate leaders; he’s also engaging with global political figures to discuss the concept of “sovereign AI.” This term highlights national initiatives to leverage AI for innovation through advanced computing, utilizing in-country resources and networks.

The strength of buy-and-hold strategy

Nvidia presents many opportunities for revenue and earning growth, but it won’t be without hurdles. Attaining millionaire status through investing is a journey that requires patience and the determination to hold or even increase one’s shares during market fluctuations.

With a promising outlook, Nvidia appears to be a stock worth buying and holding for years or even decades.

Seize this rare investment opportunity

Have you ever felt as though you missed your chance on a prime investment? If so, listen closely.

Our analyst team only occasionally issues a “Double Down” stock recommendation for companies that are on the verge of significant growth. If you’re anxious about having missed the boat, now may be the ideal time to invest before it slips away. The numbers following past recommendations are compelling:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $342,278!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $47,543!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $496,731!*

Currently, we are issuing “Double Down” alerts for three remarkable companies, and this moment may be one of the last chances for such an opportunity.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 16, 2024

Howard Smith has positions in Nvidia and Tesla. The Motley Fool has positions in and recommends Nvidia and Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.