Discover the High-Octane Growth Share Poised to Turn You into a Millionaire
It's common for investors to feel like they've missed out after a stock sees significant gains. Over the past year, shares of Nvidia (NVDA -1.14%) have more than tripled, which definitely falls under this category.
While past performance doesn't guarantee future results, it doesn't hinder future potential gains either. Nvidia has a variety of projects in the pipeline beyond just selling advanced AI chips, which have driven their revenue surge. By continuing to invest in Nvidia stock, investors could potentially continue their journey towards financial success.
Moving Past the "Fantastic Eight"
A large portion of Nvidia's recent revenue has come from tech giants buying up any available GPUs (graphics processing units) for their AI data center expansions. Nvidia's fiscal 2024, which ended in January 2024, saw sales increase by 126% to over $60 billion. As shown below, a large portion of this came from the biggest tech companies.
Besides this heavy reliance on a few companies, the U.S. dominated the construction of new data centers geographically, with nearly 5,400 facilities as of March 2024. Germany, the UK, and China followed with around 500 each, while India, with its massive population, had only 152.
However, Nvidia CEO Jensen Huang has expressed his desire to collaborate with India's leading industrial and tech companies to make India a hub for this new industrial revolution, using data to create models and generate intelligence at scale across various industries.
Targeting the Largest AI User Market
In late October, Huang engaged in a discussion with India's Mukesh Ambani, the billionaire behind Reliance Industries, which has interests in energy, retail, telecom, and digital services. Huang expressed his aim to transform India, with its population of nearly 1.5 billion, into a center not just for IT, but for AI as well.
During the discussion, Huang revealed that Nvidia has over 10,000 engineers in India and is considering manufacturing semiconductor chips there. He also mentioned that Nvidia and Reliance have agreed to partner to build AI infrastructure in India.
Given India's vast amount of data and huge user base, it makes sense for Huang and Nvidia to focus on this potential AI market. While investors have primarily focused on Nvidia's current GPU customers, they may be overlooking India's untapped potential.
Boost Your Portfolio
Investors who have already invested in Nvidia have seen their portfolios significantly grow. But for those who don't own it or want to increase their position, it's not too late.
One Wall Street analyst has expressed confidence in Nvidia's continued growth potential. Harsh Kumar of Piper Sandler has a positive outlook on the stock. In a recent report, he highlighted Nvidia's strong position in AI accelerators and the launch of their Blackwell architecture, suggesting that Nvidia is well-positioned to capture a large portion of the market while only ceding a small portion to competitors.
Therefore, investors should not worry about why Nvidia stock has already surged in the past year. Instead, they should consider whether adding to existing positions or starting a new one could help support their goal of achieving a million-dollar portfolio.
Despite the perception of missing out on Nvidia's significant gains, investors can still potentially benefit from further growth by continuing to invest in the company. Nvidia's diversified projects, such as collaborations and expansion plans in India, indicate promising financial opportunities.
Piper Sandler's analyst, Harsh Kumar, has expressed confidence in Nvidia's continued growth potential due to its strong position in AI accelerators and the launch of their Blackwell architecture. This suggests that investors might consider increasing their positions or starting new ones to help support their goal of achieving a million-dollar portfolio.
