2 Stocks That Have Turned $10,000 Into More Than $1 Million in 10 Years

If you invest for the long term and are willing to be patient, you can generate life-changing returns. As long as you have the mindset that you're buying and holding for the future rather than looking for quick wins, that can ensure you have the right temperament when picking good growth stocks to own for your portfolio. It's also a much safer strategy than simply trying to chase the latest hot stocks, which can result in losses and excessive risk-taking.

And in some cases, strong returns can arrive much quicker than you expected. Two stocks that have turned $10,000 investments into more than $1 million in just 10 years are Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). Here's why they've done so well and if they're worth buying today.

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Nvidia: $2.41 million

A $10,000 investment in chipmaker Nvidia 10 years ago would be worth $2.41 million today, as it has risen an astounding 24,000% during that time. This wasn't a slow-and-steady ascent in value. Instead, the tech stock soared like a rocket ship within the past couple of years.

The reason for Nvidia's skyward spike isn't a mystery to anyone who has followed the stock market in recent years. Its chips are integral to artificial intelligence (AI) and the development of chatbots, as well as nearly everything related to AI development. It dominates market share, which allows it to generate fantastic profit margins, ensuring that as its sales take off, so too does its bottom line.

Today, Nvidia is the most valuable company in the world, with a market cap of $4.55 trillion. It trades at a price-to-earnings (P/E) multiple of 53, which may seem excessive. But if you're a long-term investor, the stock can still pay off for you in the long run, as there are still many growth opportunities out there related to AI, and Nvidia has partnered with many companies.

It may not yield the same massive returns over the next decade, but this can still make for a good long-term investment to hold on to.

Advanced Micro Devices: $1.1 million

Nvidia's key rival is Advanced Micro Devices, also known as AMD. It's another stock that has been flying high of late. Its returns over the past decade sit at about 10,940%. That looks paltry in comparison to Nvidia, but it would still have been enough to turn $10,000 into approximately $1.1 million today.

AMD has been a bit slower in AI chip development, but it has been picking up the pace. This year, the stock has even outperformed Nvidia by a wide margin (97% versus 38%, as of Nov. 17). The company has been showing that its chips can provide Nvidia customers with some viable alternatives. OpenAI, the company behind ChatGPT, recently announced it would be working more closely with the chipmaker, and it may end up taking a 10% stake in AMD. It's a great vote of confidence for the business, which many skeptics have not considered to be a serious rival to Nvidia in the past.

AMD has a market cap of around $375 billion, but with lighter profits, it trades at a P/E of 114, thus making it seem more expensive than Nvidia. But the company is still in the early innings of scaling its AI chip business, which could beef up its margins and earnings in the future.

This can be another good long-term buy, especially if you believe CEO Lisa Su and her projections that AMD could generate tens of billions of dollars in AI-related revenue in the near future. With the company now getting some valuable recognition, its rally may not be over just yet.

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.