Imagine You Invested $10,000 in Nvidia 10 Years Ago. Here's What Your Stake Would Be Worth Today.

Nvidia (NASDAQ: NVDA) shares have delivered a remarkable 10-year gain of about 14,090%, and a total return (with dividends reinvested) of 14,760%. So in either case, a $10,000 investment made 10 years ago would have grown into a position worth over $1.4 million today.

As eye-popping as the company's returns have been, no investment is without risks. Here's a quick look at the products and services that made Nvidia a titan of the tech world, and a few factors worth considering as you decide whether you want to add it to your portfolio now.

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Nvidia's claim to fame

Nvidia made its name by designing powerful graphics processing units (GPUs). Those GPUs were originally used primarily to improve video game and design software performance, but over the years, their powerful parallel processing capabilities have found uses in high-performance computing, crypto mining, and, more recently, data centers, artificial intelligence, and autonomous vehicles. Nvidia also offers a powerful software platform, CUDA, that developers can use to program its chips for specific tasks.

But is Nvidia right for you?

There's no doubt that Nvidia is an impressive company, and it has been a winning pick for long-term shareholders in the past. However, with any enterprise, it's a good idea to look beyond the hype and consider the risks. For Nvidia, potential risks include:

• Heavy dependence on AI spending: The largest use case for Nvidia's hardware is now to power AI data centers, so its revenues and earnings hinge on big tech companies continuing to invest heavily in expanding their compute capacity. If community pushback or economic issues slow the build-out of new data centers, or if companies cut back on their AI budgets, Nvidia's growth could take a hit.
• Rising debt: Nvidia's quarterly filing in August warned investors that rising debt could "adversely affect" the company's financial condition and cash flows. As of July 26, 2026, the company had $33.5 billion in senior notes outstanding. In addition, $15 billion of that debt is due within one to five years.
• Political headwinds: Nvidia sells products globally, so its sales can be impacted by international trade rules and economic conflicts, including tariffs. Because there's no way to predict when the next set of tariffs may be implemented in this political climate or where the next war may break out, there's always the risk of it losing easy access to some foreign markets, which could cut into its revenue.
• Regulatory risks: It was reported earlier this month that the Department of Justice is intensifying its scrutiny of Nvidia's $17 billion deal with AI start-up Groq. The regulator's concern is whether Nvidia structured its agreement with Groq to avoid antitrust oversight. Potential fines and tighter scrutiny of upcoming deals could ultimately affect the bottom line and investors' returns.

Whether you're planning for retirement or diversifying your portfolio, Nvidia could be a great addition to your portfolio. However, before making a decision to buy, weigh it all -- both the potential rewards and potential risks.

Dana George 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.