Are you looking for growth stocks that can turn a small investment into a fortune over time? If so, check out these two companies that have done that for investors in the past 20 years. These are Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL), two of the most successful and innovative companies in the tech industry.
This article will show how much $5,000 invested in these stocks 20 years ago would be worth and why they are still worth buying and holding for the long term. We will also give you some tips on investing in these stocks and what to expect from them in the future. Read on to learn more about these two growth stocks that have turned $5,000 into more than $1 million in 20 years.
The Power of Growth Investing With 2 Growth Stocks
Growth stocks are often the best way to multiply your money over the long term. If you are patient, you don’t need to invest much money upfront and hold on to your shares for many years. Two examples of stocks that have delivered excellent returns to investors in the past 20 years are Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL). Let’s see how much $5,000 invested in these stocks 20 years ago would be worth now.
Nvidia: The AI Chip Leader Among 2 Growth Stocks
Nvidia is a well-known name in the tech industry for its graphics cards, but its business has soared to new heights in recent years. The growing adoption of artificial intelligence (AI) and the popularity of ChatGPT (and other generative AI applications) have boosted the demand for its chips. Nvidia aims to be a leader in the AI revolution.
ChatGPT alone used about 10,000 chips to create its conversational AI, and Nvidia has a dominant position in the AI chip market (with an estimated 80% share). Its business has thrived as a result. In the last three quarters, its revenue has surged by 86% year over year to almost $39 billion. Its earnings have also jumped from less than $3 billion to over $17 billion.
Bank of America analysts predict that Nvidia could add another $14 billion to its revenue by 2027 as the demand for AI services and chatbots increases. That’s a massive opportunity for a company that made just under $27 billion in sales in fiscal 2023, which ended in January last year.
Nvidia’s stock has rewarded investors handsomely since the beginning of 2004, with a $5,000 investment now worth almost $1.6 million. Nvidia’s valuation is high today, so it may not repeat its stellar performance in the next 20 years. But with more growth potential ahead, it could still be a wise investment in one of the best AI stocks in the market.
Apple: The iPhone Giant Among 2 Growth Stocks
Apple struggled in the 90s and was on the verge of bankruptcy in 1997. Its competitor, Microsoft, came to its rescue, investing $150 million in the computer company.
Since then, Apple has turned things around. A critical factor in its success is the iPhone. Apple’s Mac computers are popular today, but the launch of the iPhone changed the game for the company and made it an attractive, innovative company to invest in. The company has also introduced iPads and other services over the years, but the iPhone remains its core product. It all goes back to there.
Apple has a loyal and large customer base of nearly 1.5 billion active iPhone users worldwide, to whom it can sell more products and services. Even though the latest iPhone models may not have groundbreaking new features, many of its faithful customers still want the most unique and best iPhone.
In its most recent fiscal year (ended Sept. 30, 2023), Apple made over $200 billion in iPhone sales, which was only 2% lower than a year ago, despite inflation and rising interest rates. This shows the company’s resilience and strong brand, as its main product still performed well in a challenging economic environment.
Apple’s business still has room to grow, especially in services, where it can generate recurring revenue from subscriptions and encourage its users to use more of its ecosystem. From music to streaming to news, many service’s revenues in the future.
Apple’s valuation is close to $3 trillion, which may make it seem expensive. However, with a devoted and huge customer base, it could still be an excellent long-term investment for your portfolio.
Why 2 Growth Stocks Are Still Worth Buying
Growth stocks can be a great way to turn a small investment into a fortune over time. Nvidia and Apple are two stocks that have done that for investors in the past 20 years. Both companies have strong positions in their respective markets and have plenty of opportunities for future growth. While their valuations are high today, they could still be worth holding for the long term.
How to Invest in 2 Growth Stocks
If you are interested in investing in these stocks, you will need a brokerage account that allows you to buy and sell shares of publicly traded companies. You can choose from various online platforms that offer different features and fees. Some of the popular ones are Robinhood, E*TRADE, and Fidelity. You will also need to research and analyse before making any investment decisions, as the stock market can be volatile and unpredictable. You should also diversify your portfolio and invest only what you can afford to lose.
The Bottom Line on 2 Growth Stocks
Nvidia and Apple are two growth stocks that have turned $5,000 into more than $1 million in 20 years. They are both leaders in their fields and have strong growth prospects for the future. They may not be cheap, but they could still be worth buying and holding long-term. Investing in growth stocks can be a rewarding way to grow your wealth over time, as long as you are patient and disciplined.