Nvidia: The Driver of AI Growth and Its Future Potential

Nvidia has impressed as one of the most significant "wealth machines" in the investment world in recent years. Those who invested $10,000 in the company five years ago now hold more than $275,000, bringing many investors significantly closer to their millionaire goals. Despite this success story, the question remains whether Nvidia can achieve similar gains in the future. The company's rise is inextricably linked to the boom in artificial intelligence (AI). Nvidia's main product, graphics processing units (GPUs), is essential for training AI models. Thanks to their ability to perform multiple calculations in parallel, they are ideally suited for this task. When thousands of GPUs are connected in a cluster, they reach a computing power that enables the efficient training of state-of-the-art AI models. This intense competition among companies massively expanding their computing capacities leads to rapid revenue growth for Nvidia. No wonder Nvidia shares have been among the top investments in recent years. But what does the future hold for Nvidia? The stock price is high, but so are the market opportunities. Despite the impressive growth, investors should not necessarily expect Nvidia to replicate the same performance over the next five years. The company is now the second-largest corporation worldwide and is rapidly approaching the market leader, Apple. For Nvidia to double or even triple its stock value, the company would need to reach a size no other has ever dared to dream of. Investors should therefore consider adjusted return expectations. A common goal is to beat the market by one to two percentage points annually, as this can make a significant difference over time. A solid return over years can significantly shorten the path to wealth acquisition.