Investing in Growth: Nvidia and Apple's Multimillion-Dollar Returns from a Modest Sum

Investors often dream of turning a modest sum into a fortune, and for those who placed their bets on certain growth stocks, that dream has become a reality. By investing just $5,000 into key companies like Nvidia and Apple 20 years ago, some have reaped returns that have crossed the million-dollar threshold. The question on many investors' minds now is whether these stocks continue to be good investments looking forward.

Nvidia's Stellar Growth

Nvidia, long known for its graphics cards, has seen remarkable success due to its central role in the artificial intelligence (AI) boom. The company's chips are pivotal in powering AI advancements, including prominent applications like ChatGPT. Dominating nearly 80% of the AI chip market, Nvidia's revenue soared by 86% year over year to nearly $39 billion over the past three quarters, with earnings jumping from under $3 billion to above $17 billion.

Analysts predict a bright future, estimating an additional $14 billion in Nvidia's revenue by 2027, driven by increasing demand for AI and chatbots. In 20 years, a $5,000 investment in Nvidia would now be worth nearly $1.6 million. While a repeat of such an explosive increase may be unlikely, the company's prospects in the AI space suggest Nvidia could still be worth considering for investors.

Apple's Transformation and Success

Facing bankruptcy in the late '90s, Apple has since staged a dramatic reversal, largely thanks to its game-changing iPhone. With approximately 1.5 billion active iPhone users worldwide, Apple has leveraged its product to establish a loyal customer base and expand its offerings into services like music, streaming, and news.

Despite economic challenges, Apple's recent fiscal year saw iPhone sales exceeding $200 billion, only a 2% decline from the previous year, illustrating the brand's enduring appeal. Apple is now approaching a valuation near $3 trillion, and with ample opportunity for growth, particularly in services, Apple remains appealing for long-term investors who value steady growth and brand strength.

growth, stocks, investing