Could $5,000 Invested in Nvidia Today Make You a Millionaire?

A $5,000 investment in Nvidia (NVDA) today could potentially lead to a millionaire status, but it requires patience and a long-term perspective. The company's stock has shed nearly 30% of its value since peaking last month, currently trading at a price that is surprisingly cheap. Nvidia's earnings report is due in less than a week, and the company has a history of beating earnings expectations and raising guidance.

To turn $5,000 into a million, Nvidia's stock would need to increase by a factor of 200, which would require the company's market cap to exceed $800 trillion, assuming its share count doesn't increase during that time. Nvidia has been actively buying back its shares, reducing its fully diluted share count by nearly 4% over the past five fiscal years.

The company has also announced a record $150 billion in repurchase authorizations, which could further decrease its share count by over 5% if all shares are bought back at current prices.

Nvidia's financial performance has been consistent, with the company delivering beat and raise performances. The upcoming earnings call on November 17 is expected to provide further insight into the company's growth trajectory. Despite the stock being cheap, trading for less than 11 times next year's earnings estimates, a 200-bagger is not a realistic expectation for most investors.

However, investing in Nvidia now could provide a solid starting point for long-term growth, especially as the company continues to expand its business and margins. The Motley Fool's Stock Advisor recommends Nvidia among its top 10 stocks, boasting an 835% average return, significantly outperforming the S&P 500's 208% return.