Here’s Why Nvidia Still is a Multimillionaire-Maker | The Motley Fool

Nvidia (NVDA +0.88%) has helped investors take serious steps along the path to wealth — and with a gain of more than 21,000% over the past decade, it’s clearly made some early investors multimillionaires. This is because the company emerged as the world’s dominant designer of chips powering the high-growth industry of artificial intelligence (AI).

From today’s higher levels, I wouldn’t expect Nvidia stock to deliver a repeat performance over the next few years, but the stock still has what it takes to climb significantly — and even help investors grow their portfolios into the millions of dollars over the long run. Here’s why this stock still is a multimillionaire-maker.

Nvidia’s daring move

First, a quick look at how Nvidia became a millionaire-maker in recent years. The company made a daring move, tailoring its graphics processing units (GPUs) to suit the needs of the promising field of AI — and it did this early on, putting itself on track for leadership. Nvidia won this bet, and the company’s ongoing innovation has kept it in the top spot.

All of this has translated into enormous growth, with double- and triple-digit revenue gains over the past few years. Profitability on sales also has been strong, as gross margin shows us — Nvidia generally has maintained a level greater than 70%.

NVDA Gross Profit Margin (Quarterly) data by YCharts

That said, investors have worried that Nvidia’s best…