The rapid adoption of artificial intelligence (AI) is expected to give the global economy a big boost in the long run, with PricewaterhouseCoopers (PwC) estimating that this technology could contribute a whopping $15.7 trillion, or 14%, to the global gross domestic product (GDP) by 2030.
PwC points out that AI-focused economic gains will be driven by an improvement in productivity, as well as new products that are likely to boost consumer demand. Not surprisingly, investors have been buying AI stocks hand over fist over the past year to take advantage of this huge end-market opportunity.
More importantly, the massive economic potential of AI suggests that buying and holding solid AI stocks for a really long time could give investors impressive returns, as they will be able to benefit from the power of compounding while capitalizing on a rapidly growing market.
That’s why if you have investible cash of $200,000 after paying your bills, clearing high-interest loans, and saving enough for bad times, it may be a good idea to put that money into shares of both Nvidia (NASDAQ: NVDA) and Snowflake (NYSE: SNOW). These stocks could help you become a millionaire, or at least get close to that milestone, as part of a diversified portfolio. Let’s see how.
1. Nvidia
Nvidia has seen a big surge in demand for its graphics processing units (GPUs) thanks to AI, leading to eye-popping growth in the company’s revenue and earnings in recent quarters. The market has rewarded Nvidia’s impressive growth with solid gains, which explains how the stock would have turned a $200,000 investment into $659,000 in the past year.
NVDA Chart
However, a closer look at Nvidia’s AI-related opportunity indicates that the company is just getting started. Market research provider IDTechEx estimates that the market for AI chips could generate $258 billion in annual revenue in 2033, growing at an annual rate of 24% over the next decade.
Nvidia’s market share of more than 80% in AI chips means that it is in a prime position to make the most of this multibillion-dollar market opportunity. The company’s revenue…
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