Key Points
Nvidia continues to upgrade its products and launch more powerful chips.
It has a huge opportunity in data centers, which need powerful chips for their large data loads.
Nvidia stock became the first $4 trillion stock last week.
Nvidia (NASDAQ: NVDA) made big news last week when it became the first company ever to reach a $4 trillion market cap. Although investors were worried about it earlier this year due to competition and tariffs, savvy investors saw its plunge as an incredible opportunity, and they've been proven right already.
At its incredible highs today, can investing in Nvidia stock still make you a millionaire?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
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The massive AI opportunity
Nvidia soared to the top of the market due to its best-in-class graphics processing units (GPU) that make generative artificial intelligence (AI) work. It's been around for decades, but its products have been used mostly for the gaming industry. This new opportunity is much greater, and demand has been through the roof. Nvidia stock is up 1,000% over the past three years.
According to Statista, the AI opportunity is going to increase at a compound annual growth rate of 26.6% over the next five years. Nvidia may benefit from that expansion more than any other company. It has between 90% and 95% of the market for AI chips, and even though it's facing increasing competition, the largest and most lucrative contracts are ending up on its platform because it has powerful capabilities that are unmatched in the chip market.
It's not satisfied with leaving it that way, though, and it's in the process of creating and launching ever more powerful chips to drive further generative AI capabilities and higher growth. Its Blackwell architecture was launched last year, and it's already in the process of launching the next level of chips called Blackwell Ultra, with its first contract under way with CoreWeave. It's also an investor in CoreWeave, which offers cloud solutions for generative AI.
Nvidia has tremendous opportunities in data centers and AI factories, which large-language models (LLM) need to crunch the huge loads of data necessary to make generative AI work. Data center revenue increased 73% year over year in the 2026 fiscal first quarter (ended April 26), outpacing total revenue growth of 69%, and the demand is exploding. There were 100 Nvidia-powered AI factories in the first quarter, double the amount last year, with the average number of Nvidia chips in the data centers also double the number of chips used last year.
Nvidia is also incredibly profitable. It sports a 52% profit margin as of the first quarter, and Wall Street is looking for earnings per share of $4.29 in fiscal 2026, up from $2.99 last year.
The road to millions
Even if we've established that Nvidia is a top growth company, that doesn't necessarily mean it can make you a millionaire. Of course, it depends on what you start with, and half a million dollars might make you a millionaire over a few years. However, considering its $4 trillion value and slowing growth, the road to millionaire status might not lead through Nvidia stock for the average investor, even if you have $10,000 to invest.
Turning $10,000 in $1 million implies 10,000% growth. Imagine $4 trillion increasing 10,000% and it becomes clear that this isn't something realistic for Nvidia stock.
If you're looking for the next Nvidia, Nvidia isn't going to be it. But it's a safe bet for growth over time, and it could reach $5 trillion soon. The stock price could reach $200 before the year is out, a 21% gain over today's price, implying a market cap of $4.8 trillion by the end of 2025. It's a winning stock that could be a valuable addition to a diversified portfolio.
Should you invest $1,000 in Nvidia right now?
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.