The trajectory of Nvidia (NASDAQ: NVDA) shares has been somewhat derailed this year, following a staggering 1,400% boost that spanned the last five years. Market sentiment seems to have been affected by several factors ranging from concerns about the reduced need for Nvidia’s robust chips in forthcoming artificial intelligence (AI) models to regulatory constraints affecting exports to China. Despite these uncertainties, many investors continue to appreciate Nvidia’s potential for long-term growth – a sentiment echoed by 90% of the 67 Wall Street analysts following the company, who maintain a ‘buy’ recommendation for the stock. Let’s take a step back and examine the current state of Nvidia, its growth trajectory, and its potential as a wealth-making opportunity.
Nvidia, the cornerstone of AI platforms
The credibility of Nvidia’s growth potential was reinforced during its Q1 2026 financial results announcement (which ended April 27). The landmark report highlighted a remarkable 69% year-on-year revenue increase while posting non-GAAP (adjusted) earnings per share growth from $0.61 to $0.81 within one year. Though affected by a $0.15 loss per share due to undelivered orders to China, the company still depicted a robust profitability, showcased by its impressive 52% net profit margin.
In terms of AI chip market share, Nvidia stands unquestioned with an estimated 95% dominance depending on the source. Virtually all significant AI participants leverage Nvidia’s impressive graphics processing units (GPUs) for their AI operations. Major names in AI platform delivery, such as Amazon and Meta Platforms, depend on Nvidia for their extensive data center needs, critical to the functioning of their tech. This partnership is evident in Nvidia’s accelerating data center business, which increased by 73% YoY in Q1.
Amazon has ventured into chip manufacturing to offer cost-effective solutions to its customer base but continues to rely on Nvidia’s high-end offerings for its top-tier clients, indicating the strength of Nvidia’s bond with these tech giants.
Keeping a strut ahead of competition
Nvidia’s market value was subjected to scrutiny following the emergence of a Chinese competitor, LLM DeepSeek, a few months earlier. This firm demonstrated formidable results without requiring Nvidia-like high-power chips. However, Nvidia CEO, Jensen Huang, welcomed this development, asserting that advancements in AI represent collective growth for the industry, not just Nvidia, and hence refrained from expressing concern.
Since then, anxiety about the competition has calmed down as Nvidia has continued to dominate with its innovative product launches and exceptional performance. The company replaced its preceding AI technology, Hopper, with a more advanced solution called Blackwell. It’s preparing to roll out a more refined version of this, referred to as Blackwell Ultra, and an even more powerful chip series, Rubin, slated for launch next year. The enterprise seems persistently focused on enhancing its product line to solidify its market dominance.
Huang emphasized the growing necessity for inference in AI, a process by which AI utilizes collected data to produce results. Furthermore, he expressed optimism about the potential surge in demand for AI computing due to agentic AI. He likened the importance of AI to crucial infrastructures such as electricity and the internet, placing Nvidia at the heart of this transformative era.
The unparalleled scale of the AI opportunity, coupled with Nvidia’s potential to sustain its dominance, poses a promising prospect for wealth creation for its shareholders.
Is Nvidia a medium to become a millionaire?
It isn’t unreasonable to anticipate consistent growth from Nvidia and a corresponding increase in its stock price. However, considering the company’s current stature, it is not plausible for the firm to reproduce its past exponential gains. Even as it forecasts constant business expansion, Nvidia also anticipates a slowdown in its growth rate due to the sheer size of its base.
These factors, in part, contribute to Nvidia’s stock appearing reasonably priced from an earnings perspective, trading at an affordable forward one-year P/E ratio of 25.
An initial investment of $10,000 in Nvidia today offers a great potential; however, its chance to convert you into a millionaire is less likely. Such an event implies a 10,000% hike, an improbable outcome for Nvidia shares, even in the long run.
Regardless, Nvidia is still a goldmine of opportunities and is positioned to reward investors handsomely over the coming years. As an attractive AI stock option, if you haven’t invested in Nvidia yet, it could be a worthy addition to a portfolio aimed at wealth accumulation.
The post Nvidia Stock: Solid Bet for Long-term Growth Despite Challenges appeared first on Real News Now.
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