Buying and holding strong companies for the long term is a smart investment strategy because it allows investors to benefit from the power of compounding while allowing them to capitalize on the disruptive trends that tend to shape our lives.

Nvidia (NVDA 4.07%) has proven to be such a stock over the past decade. Specifically, an investment of just $3,700 made in Nvidia a decade ago is now worth $1 million.

NVDA given by YCharts

The stock’s stellar growth during this period was fueled by multiple growth trends, such as the increasing adoption of graphics cards in personal computers (PCs) and workstations, the increasing integration of semiconductors into vehicles , cryptocurrency mining and the booming demand for cloud computing applications. where its graphics processing units (GPUs) come in handy.

Thanks to these catalysts, Nvidia is (at the time of writing) the largest company in the world, with a market cap of $3.58 trillion. Expecting Nvidia to replicate the phenomenal gains it’s made over the past decade and into the next 10 years would be absurd given how big it’s already become. After all, a 270x increase from current levels would raise Nvidia’s market cap to $966 trillion, which would be illogical given that global gross domestic product (GDP) will reach $139 trillion in 2029, growing at a compound annual rate of less than 5% (from 2023 levels of $105 trillion).

Still, Nvidia could prove to be a solid choice for investors looking to build a million dollar portfolio considering that it still has a lot of room for growth. Here’s a closer look at some of Nvidia’s end-market opportunities that could help this semiconductor stock keep its run on fire for a long time.

Booming demand for GPUs is Nvidia’s biggest catalyst right now

Nvidia stock has received a massive boost over the past few years thanks to its dominant position in the GPU market as these chips are deployed in large numbers in data centers for AI training and inference. Nvidia GPUs are used by all major cloud computing providers, including Microsoft, Alphabet, Amazonand Meta platforms. Governments around the world are also buying Nvidia chips to fuel their AI ambitions.

This puts Nvidia in a solid position to maintain remarkable growth over the next decade. That’s because the size of the global GPU market is expected to grow from $56 billion last year to $1.4 trillion in 2034, according to Precedence Research. Nvidia reportedly has between 70% and 95% of the AI ​​GPU market, according to Mizuho Securities (as reported by CNBC).

More importantly, Nvidia it leaves its rivals with AI chips in the dust due to its early move into this niche as well as the company’s ability to stay technologically ahead. As a result, it’s no surprise that analysts are expecting Nvidia data center business to grow rapidly based on robust demand for its AI chips.

Nvidia also dominates the market for GPUs that are implemented in PCs and workstations. Jon Peddie Research (via Tom’s Hardware) points out that Nvidia controls 88% of the market for discrete GPUs that are used in computers. It should open another great long-term growth opportunity for Nvidia, as the adoption of AI-enabled computing will grow at an incredible pace.

Nvidia is expected to generate an estimated $125.6 billion in revenue in the current fiscal year, according to consensus estimates compiled by Yahoo! Finance. That would be a 125% increase from the previous fiscal year, and the massive revenue opportunity present in the GPU market suggests that Nvidia may be able to continue growing at a healthy pace over the long term.

However, Nvidia has other lucrative growth opportunities where it is making solid progress.

Investors should not miss out on the lucrative opportunity available in these end markets

Nvidia sought to diversify by entering the enterprise software market. In the month of August earnings conference callmanagement pointed out that its software, software-as-a-service (SaaS) and support revenue should reach an annual revenue rate of $2 billion by the fourth quarter of fiscal 2025. That would be double the $1 billion revenue run rate for this period. business recorded in the fourth quarter of fiscal year 2024.

It’s easy to see why Nvidia has been able to double the growth rate of this segment over the past year. The company provides companies with software platforms to help them build and deploy Generative AI applications. There’s a solid chance Nvidia’s AI software offerings will gain more momentum as they enable enterprise customers to build, deploy, and customize AI models. without having to break the bank.

As a result, Nvidia could be on its way to exploiting a massive opportunity in the AI ​​software market, a space that is expected to generate a whopping $391 billion in revenue by 2030, according to ABI Research.

Meanwhile, the rapidly growing adoption of digital twins could unlock another tremendous opportunity for the chipmaker. A digital twin is a virtual representation of a physical object or process in the real world and is adopted by many companies to improve the efficiency of their processes and factories. Nvidia was gaining good traction in this marketmanagement showing on the previous earnings conference call that companies like Foxconn, Mercedes-Benz and WPP are some of the global enterprises using their solutions to build digital twins.

Again, this is another potentially huge opportunity for Nvidia, as Precedence Research estimates that the digital twin market could be worth $383 billion in 2033, compared to $14 billion in 2023.

Nvidia’s rapid growth isn’t over yet

We’ve already seen that Nvidia is on track to make $125 billion this year. Investors should note that the company estimated a total addressable market (TAM) of $1 trillion at the investor day in March 2022. However, this figure is likely to have risen higher.

CEO Jensen Huang recently noted that the company sees a $1 trillion revenue opportunity in the data center space alone due to the transition to accelerated computing from general purpose computing (performed using central processing units). Given that accelerated computing is enabled by the GPUs Nvidia sells and a market it currently dominates, its TAM is likely to be much higher at this point.

All of this probably explains why there are expectations on Wall Street that Nvidia could reach $10 trillion or even a $50 trillion valuation in the future. Consensus estimates are also bullish on Nvidia’s outlook, expecting its earnings to grow at a 57% annualized rate over the next five years.

As such, it won’t be surprising to see this supercharged growth stock continue its bullish momentum on the stock market over the long term. Therefore, investors looking to make a million dollar portfolio may consider buying it even after the remarkable gains it has produced over the past decade.