If I were forced to buy and hold just one stock, there’s no question in my mind: it would be Nvidia. While a portfolio made up of a single stock is far from an ideal investment strategy due to its lack of diversification and inherent risk, it’s a thought experiment worth considering. If I had to choose one stock to hold, Nvidia would be my pick. Let me explain why.
Nvidia is a global leader in graphics processing units (GPUs), which are integral to training and deploying artificial intelligence (AI) models. As AI has rapidly developed, Nvidia’s data center business has experienced explosive growth. In its most recent financial report, Nvidia’s data center segment accounted for $39 billion in revenue, roughly 89% of the company’s total income. This dominance in the AI field has positioned Nvidia as one of the most promising growth stocks of the decade.
What’s more, Nvidia’s market potential continues to expand. According to analysts from Bank of America, Nvidia’s total addressable market (TAM) could reach $2 trillion as AI applications proliferate across industries. This massive opportunity is not just theoretical—it's rapidly becoming reality.
AI has become a growth engine for Nvidia, and projections for the company’s future revenue are staggering. For the fiscal year 2025, analysts predict Nvidia’s revenue will hit $200 billion, a 53% year-over-year increase. The following year, that figure is expected to rise to $250 billion. Much of this growth can be attributed to the widespread adoption of AI in sectors like automation, robotics, and autonomous vehicles.
Robotics and autonomous driving are two trends that are gaining significant traction. Tesla recently launched its robotaxi service, while Waymo, a subsidiary of Alphabet, is also advancing its self-driving car technology. At the same time, Amazon has deployed over 1 million AI-powered robots in its fulfillment centers, outnumbering human employees. The explosion of AI-driven automation creates an enormous need for computing power, and Nvidia is at the forefront of supplying that power.
As automation and autonomous vehicles continue to evolve, Nvidia will be a key player in meeting the demand for computational resources. Companies involved in autonomous driving, logistics automation, and robotics will need robust AI infrastructure, and Nvidia’s GPUs are perfectly positioned to serve as the backbone for these technologies. As these networks scale, so too will Nvidia’s opportunities.
There are two main reasons to consider Nvidia as a stock to buy now. First, its $2 trillion market opportunity shows there is still vast room for growth in the coming years. Second, this opportunity could expand even further as emerging technologies like robotics and autonomous vehicles continue to scale. Therefore, while owning just one stock is not typically advisable, if I had to make that choice today, Nvidia would be the one I would hold.
However, before you decide to invest in Nvidia, it’s important to keep in mind that all investments come with risks. Market fluctuations and potential challenges the company may face should not be overlooked. While Nvidia’s position in AI is undeniable, it’s essential to do thorough research and consider your own risk tolerance before making any investment decisions.
In conclusion, Nvidia is not only a leader in the AI revolution, but it is also poised for continued expansion. While a one-stock portfolio is generally not recommended, Nvidia’s potential in the ever-growing AI, robotics, and autonomous vehicle markets makes it a compelling investment choice.