10 Most Profitable Stocks of the Last 10 Years

2. NVIDIA (NASDAQ:NVDA)  

10-Year Net Income CAGR: 58.47%  

TTM Net Income: $53.01 Billion  

Number of Hedge Fund Investors: 179  

NVIDIA (NASDAQ:NVDA) is a global leader in graphics processing units (GPUs) and a pioneer in AI, gaming, and data center technology. The company’s GPUs are widely utilized in gaming, deep learning, and high-performance computing. NVIDIA’s (NASDAQ:NVDA) AI and machine learning solutions have been adopted across various industries, including healthcare, automotive, and finance. Notable customers include Amazon Web Services, Google Cloud, and Tesla.

NVIDIA (NASDAQ:NVDA) is positioned for ongoing growth, driven by its strong presence in the data center market and the upcoming Blackwell chip. Blackwell is highly sought after by companies such as OpenAI, Microsoft, and Meta, who are building AI data centers to support their products. The Blackwell GPUs, priced between $30,000 and $40,000 each, are already being distributed to data centers and industrial customers for AI applications, with consumer availability expected in 2025.

In a CNBC interview, CEO Jensen Huang remarked that “Blackwell is in full production and demand for Blackwell is insane,” adding, “Everybody wants to have the most and everybody wants to be first.” NVIDIA’s (NASDAQ:NVDA) leadership in accelerated computing and generative AI is also a key factor in its growth outlook.

NVIDIA (NASDAQ:NVDA) is poised to benefit from the expanding enterprise AI market, along with growing opportunities in the automotive and healthcare sectors, as its products and solutions gain traction in these areas.

In Q2, global spending on cloud infrastructure rose by 19% year-over-year to $78.2 billion, according to Canalys. Hyperscalers are expected to spend approximately $160 billion on AI infrastructure in 2024.

With its robust position in the data center market and emerging opportunities in various industries, NVIDIA (NASDAQ:NVDA) is well-positioned to capitalize on these trends and drive further growth. Analysts estimate that the company’s earnings will grow by 81.88% this year. With a consensus Buy rating from industry analysts, the stock has a target price of $148.53, which represents a 12.08% upside potential from its current level.