Could Buying Nvidia Stock Today Set You Up for Life?

Core Insights - Nvidia has delivered remarkable gains of over 26,800% in the past decade, significantly outperforming the S&P 500's 195% gains [1][2] - Nvidia is now the second-largest company globally, with a market cap of nearly $3.4 trillion, raising questions about the sustainability of its past performance [3] - The company's total addressable market is estimated to be $1.7 trillion, indicating substantial growth potential [10] Market Opportunities - Nvidia's total addressable market includes $100 billion in gaming, $300 billion in automotive, $150 billion in enterprise AI software, $150 billion in Omniverse enterprise software, $150 billion in enterprise chips and systems, and $150 billion in hyperscale chips and systems [6] - The revenue opportunity in data center chips alone has grown to $1 trillion, driven by a shift towards accelerated computing [7] - Nvidia dominates the data center GPU market, controlling 98% of it last year, positioning itself favorably against competitors [9] Financial Projections - Nvidia is projected to finish the current fiscal year with $129 billion in revenue, with consensus estimates indicating continued growth in the coming years [10][11] - Earnings per share (EPS) are expected to more than double this year, with projections of $2.95 for the current fiscal year and potential growth to $11.93 per share over the next decade [13] - The stock is currently trading at 32 times forward earnings, which is below its five-year average of 41 times, suggesting potential for price appreciation [14] Investment Considerations - If Nvidia's stock trades at 41 times earnings in a decade, the price could reach $489 per share, representing a 254% increase from current levels [15] - The company may still offer long-term upside potential, making it a candidate for a diversified investment portfolio [4][5]