Is Nvidia Stock Your Ticket to Becoming a Millionaire?

Buying and holding shares of solid companies benefiting from secular growth trends is one of the best ways to grow your money in the stock market, and Nvidia (NASDAQ: NVDA) is a prime example of this philosophy.

A $5,000 investment made in shares of this chip giant a decade ago would now be worth just over $1.1 million. Nvidia stock has delivered terrific gains over the past decade by capitalizing on disruptive trends across industries such as gaming, automotive technology, and artificial intelligence (AI). But can this high-flying chipmaker replicate its terrific performance and help investors become millionaires from here?

Image source: Nvidia.

Nvidia's growth story isn't over

The phenomenal surge in Nvidia stock in the past decade has made it the world's largest company by market capitalization.

It now has a market cap of just over $4.3 trillion, which is why it would be absurd to expect huge multibagger performance from Nvidia in the coming decade. For instance, a 10x jump from here would take Nvidia's market cap to $43 trillion, while the global economy is expected to be worth $150 trillion by 2030.

However, the stock is still a solid buy for anyone looking to construct a million-dollar portfolio. That's because Nvidia continues to deliver big growth, primarily due to massive investments in AI data centers.

The company released its fourth-quarter and full-year fiscal 2026 results on Feb. 25. Its revenue for the fiscal year jumped by 65% to almost $216 billion. Non-GAAP (adjusted) earnings per share increased by 60% to $4.77 per share. Importantly, Nvidia's growth is poised to accelerate in the new year.

Nvidia expects $78 billion in revenue in the first quarter of fiscal 2027, the current quarter, a jump of 77% over the year-ago period. Note that Nvidia clocked 69% year-over-year growth in the prior-year period. Moreover, Nvidia sees its non-GAAP gross margin landing at 75% this quarter, which would be a major improvement over the year-ago period's 71.3%.

Don't be surprised to see this momentum continuing in the coming years. After all, investments in AI are unlikely to slow down. From consumer devices to factories to robots to cars, AI adoption is poised to accelerate, driving robust growth for Nvidia.

For example, Nvidia seems to be dominating the next frontier in AI -- physical AI. This concept refers to the integration of AI with real-world physical machines such as autonomous vehicles, drones, and robots. Nvidia generated $6 billion in revenue from physical AI applications.

The valuation is too good to ignore

Nvidia stock is trading at just 22 times forward earnings estimates, a discount to the tech-laden Nasdaq-100 index's multiple. However, Nvidia's earnings are estimated to grow by a whopping 73% in its current fiscal year. I think it's a no-brainer buy and has a good chance of making investors with a long enough time frame and enough money to invest into millionaires, though diversification is the best way to build a portfolio.

Harsh Chauhan 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.