You’ll need these three AI stocks if you want to build a million-dollar portfolio
How long do you think you would need to turn three AI stocks and a $10,000 initial investment into $1 million? Five years? 10 years?
Well, rule of 72 gives you a bit of a hint. For your $10,000 investment to double in five years, you would have to achieve a 14.4% compound annual growth rate. To do it in 10 years, you’d need a 7.2% return.
Based on Nvidia’s (NASDAQ:NVDA) one-year return of 216%, and assuming it could keep this up indefinitely, you could take $10,000 and turn it into $1 million in four years. It’s doable.
However, over the past five years, Nvidia stock appreciated by 3,480%. That would take $10,000 to $348,000. Now, if you invest $30,000 ($10,000 for three stocks), you could achieve this feat with Nvidia-like performance.
Here then are my three AI stocks to get you to $1 million over the next five years using $30,000 as your initial investment.
Nvidia (NVDA)
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The first $10,000 has to go to Nvidia. CEO and co-founder Jensen Huang has proven himself as a brilliant tactician and leader. Of all the S&P 500 companies, his loss would be the hardest to recover from. While it’s true that no one is irreplaceable, Huang comes close.
Fortune recently covered an example of Huang’s leadership style. It described how the CEO doesn’t do one-on-one meetings with any of his 55 direct reports. He avoids unnecessary meetings. Now there’s someone I would work for. No command and control management for Huang. In a recent quote to Fortune, Huang said:
“They never hear me say something to them, that is only for them to know. There’s not one piece of information that I somehow secretly tell the staff; I don’t tell the rest of the company. In that way, our company was designed for agility. For information to flow as quickly as possible. For people to be empowered by what they are able to do, not what they know.”
It’s not hard to understand why Nvidia is the number one AI…
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