Can Nvidia Still Turn Patient Investors Into Millionaires?
The chipmaker may still be one of the best AI investments, but its sheer size has fundamentally changed what investors can realistically expect from the stock.
Overview
Ask the question "Could this stock be a millionaire-maker?" about most trillion-dollar companies, and the honest answer has to be "Probably not."
Ask it about Nvidia (NASDAQ: NVDA), whose market cap of roughly $4.7 trillion makes it the most valuable company on the planet, and the answer gets more interesting: Yes, it still can -- but you'll have to bring a lot of cash to the table.
Details
Let's be blunt about the size problem, because it's the whole story. To turn a $10,000 stake into $1 million, Nvidia would need to rise by around 100-fold. Over the past 10 years, it has more than done that. But for a company that is now already worth more than the entire German stock market, repeating the trick would imply a market cap somewhere north of $470 trillion -- larger than every public company on Earth combined today. That is not going to happen in one lifetime, and no amount of AI-related enthusiasm changes the arithmetic.
Source
Originally published at www.fool.com.