2 Large Growth Stocks That Turned $5,000 into Over $1 Million in 20 Years

If you’re investing in promising growth stocks, you don’t necessarily need to make huge investments to generate huge returns later. This can be recouped by investing over a long period of time. Here are two stocks that have provided investors with life-changing returns over the past 20 years: nvidia (NVDA 0.88%) and apologize (AAPL 0.61%). The current value of $5,000 invested in this stock 20 years ago is:

NVIDIA: $1.6 million

Nvidia has always been a popular name in technology for its graphics cards, but the business has come a long way in the past few years. The growing implementation of artificial intelligence (AI) and the popularity of ChatGPT (and other generative AI applications) have created significant demand for the company’s chips, and Nvidia intends to play a significant role in the growth of AI. About 10,000 chips were used to create ChatGPT, and with Nvidia dominating the AI ​​chip market (nearly 80% share, according to some estimates), business has flourished. Over the past three quarters, the company’s revenue has increased 86% year over year, reaching nearly $39 billion. Meanwhile, revenue soared from less than $3 billion to more than $17 billion.

According to analysts bank of americaAs demand for AI services and chatbots grows in the future, Nvidia could add an additional $14 billion to its revenue by 2027. That’s a significant amount for a company that generated less than $27 billion in revenue in fiscal 2023, which ended last January.

Since early 2004, Nvidia’s stock has delivered incredible returns to investors. I invested $5,000 at the time and it is now worth almost $1.6 million. Given today’s high valuation, it’s highly unlikely that Nvidia will deliver repeat performance over the next 20 years. However, if you expect much more growth in the future, it may not be too late to invest in one of the best AI stocks on the market.

Apple: $2.4 million

Apple struggled in the 1990s and was on the verge of bankruptcy in 1997. Apple, the rival microsoftAt the time, it invested $150 million in the computer company, giving the business a much-needed lifeline.

Things have gotten much better for Apple since then. A big part of the reason is the iPhone. Apple’s Mac computers are popular today, but it was the launch of the iPhone that really changed the business and made it an interesting and innovative company to invest in. Over the years, the company has launched the iPad and other services, but its bread and butter remains the iPhone. Everything links back there.

With approximately 1.5 billion active iPhone users worldwide, Apple has a strong customer base to upsell products and services to. And even if the latest iPhone version doesn’t offer groundbreaking new technology, many of its most passionate customers still crave the latest and greatest iPhone.

In the company’s most recent fiscal year, which ended September 30, 2023, Apple recorded more than $200 billion in iPhone sales, down just 2% from a year ago despite inflation and rising interest rates. In a true testament to the company’s versatility and strong brands, its top products still performed quite well despite difficult economic times.

Apple’s business still has room to grow, especially in its services segment, where subscriptions can provide recurring revenue that can be built over time by giving users more reasons to dive deeper into the ecosystem. From music to streaming to news, there are a number of services that could help further boost Apple’s future sales.

With a valuation close to $3 trillion, Apple’s business may seem expensive, but with its large and loyal customer base, this too could be a good investment to hold in your portfolio over the long term.