Technology is changing the world in many ways. Its presence is in every field, from manufacturing to design, logistics, communication, and more. The first wave of computing technology created the personal computer (PC) wave, followed by the mobile wave, the cloud wave, and now the artificial intelligence (AI) wave. Each wave had a few core tech companies that made their investors millionaires.
This tech stock has made its investors millionaires in two such waves: the PC gaming wave and the generative AI wave.
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A tech stock that created millionaires
The stock is Nvidia (NASDAQ:NVDA), which makes the world’s most advanced graphics processing units (GPUs) that power AI.
PC gaming: The company’s PC GPUs enhanced the gaming experience in 2016. Tech enthusiasts, gamers, and crypto miners preferred Nvidia’s GeForce GPUs, which sent the stock price rallying 200% between October 2016 and November 2017.
Beyond 2017, there was a phase of tepid growth followed by a decline due to the 2018 United States-China trade war. At that time, many investors thought that the stock was overpriced and needed correction. Those who bought more shares at the dip and waited for the next growth cycle became millionaires.
Pandemic PC upgrade and crypto bubble: Then came the time for Nvidia’s data centre GPUs. Compounding the adoption of GPU computing was the pandemic, which drove the trend of e-commerce and remote work. Cloud companies scaled, and gamers and office employees upgraded their PCs. Among all this came the crypto bubble. Nvidia’s stock rallied 716% between January 2019 and November 2021.
Generative AI: The next growth driver triggered in November 2022 when generative AI adoption kicked in. This drove its stock up by another 800% till November 2024.
The share price rally was driven by the exponential growth of revenue and earnings between January 2019 and January 2025. Its revenue and net profit grew at a compounded annual growth rate (CAGR) of 49% and 61%, respectively.
The tech stock converted $20,000 to $1.34 million in nine years
Those who invested US$10,000 in October 2016 and another US$10,0000 in January 2019 and stayed invested are sitting on a US$1.34 million portfolio.
Because US$10,000 would have bought you 5,988 shares of Nvidia in October 2016, and 2,688 shares in January 2019 after adjusting for the split. Today, Nvidia shares trade for US$155.09 per share. It means 8,676 (5,988 + 2,688) shares are worth $1.34 million.
The sharp rally has made Nvidia a US$3.7 trillion market cap company. However, the stock faced a setback when AI investments slowed amidst U.S. elections and tariff uncertainty.
Remember, Nvidia earns money by selling the design of its GPU and getting a revenue share on the number of units sold. It neither manufactures nor sells the GPUs. All the manufacturing and selling is done by third-party foundries and electronics companies that use Nvidia’s GPUs. Nvidia’s asset-light model removes fixed costs, allowing it to focus on innovation. Hence, its earnings grow faster than revenue.
The stock’s potential to make more millionaires
Coming to the main question, can Nvidia make more millionaires?
Nvidia stock jumped 64% from its April 4, 2025, as it recovered from the 34% dip from the Trump tariff uncertainty. The stock is trading at 36 times its fiscal 2026 earnings-per-share expectations. The high valuation is justified given its net income CAGR of 60%.
Nvidia could witness the next wave of AI revolution and many more such waves in the coming decade. Remember, generative AI is just one form of AI. AI is at the edge of robotics manufacturing, self-driving cars, smart cities, and more. If data centre AI infrastructure were more profit-driven, AI at the edge would be more volume-driven. When this revolution fructifies, Nvidia’s share could see another 700-800% rally.
A smart move would be to keep accumulating Nvidia shares in your Tax-Free Savings Account (TFSA) at every dip and enjoy the growth cycles. That’s how millionaires make money — they invest in something that will make money for them while they sleep.
