Let's address the elephant in the room: The idea of buying and holding just one stock is something I would never do, and frankly, the thought seems absurd to me. My portfolio is composed of dozens of stocks, as it provides me with a level of safety and diversification that lets me sleep at night. Even if one of my largest positions falls 30% or 40% (and they have), my entire portfolio only loses between 1% and 2%. I can't imagine a scenario where I would limit myself to one stock, and I recommend building a portfolio of 15 to 20 stocks at a minimum.
That said, and purely as a thought exercise, if I were to hold only one stock, it would have to meet certain criteria. I would want a company that is an industry leader, with a large addressable market and a long track record of performance. I would want to own a company that's a proven leader -- a business fueled by innovation, strong secular tailwinds, and a history of financial success.
If I could only buy and hold a single stock, Nvidia (NVDA -0.85%) would have to be it.
Image source: Getty Images.
Checks all the right boxes
There's certainly a lot to like about Nvidia, and it checks all the right boxes. The company has long been a leader in the video game market, as its graphics processing units (GPUs) are the top choice among hardcore and casual gamers alike. Nvidia is the undisputed leader in the discrete desktop GPU space, controlling 92% of the market, according to data compiled by Jon Peddie Research.
Nvidia was also able to capitalize on the advent of artificial intelligence (AI), as its GPUs are equally adept at ferrying data around the ether at lightning speeds. As a result, the company also leads the data center GPU space -- where most AI processing takes place -- with a dominant 92% of the market, according to IoT Analytics.
AI has been the driving force behind Nvidia's performance over the past few years, but this wasn't simply luck. CEO Jensen Huang saw the writing on the wall back in 2013 and focused the company's research and development efforts on AI, which positioned Nvidia for future success.
This spirit of innovation has kept the company well ahead of would-be rivals. In its fiscal 2025 (ended Jan. 26), Nvidia spent $13 billion on research and development (R&D) -- roughly 10% of its total revenue -- to maintain its competitive advantage. The company continues to explore emerging opportunities, including quantum computing, agentic AI, robotics, automation, self-driving cars, and more.
It's easy to see why Nvidia is investing heavily as it looks toward the future. The opportunity represented by AI alone is vast, but there's no consensus. Global management consulting firm McKinsey & Company estimates that generative AI could add between $2.6 trillion and $4.4 trillion to the global economy over the coming decade. The estimate from Big Four accounting firm PwC is much higher, clocking in at $15.7 trillion between now and 2030.
This helps to illustrate the size of the opportunity Nvidia has in its sights.
The numbers are compelling
Nvidia has already been reaping the rewards of the AI revolution, and it's difficult to overstate the scale of its success. The results of the past two fiscal years help provide context:
- In fiscal 2024 (ended Jan. 28, 2024), Nvidia's record revenue of $60.9 billion climbed 126%, while its adjusted earnings per share (EPS) of $12.96 surged 288%.
- In fiscal 2025 (ended Jan. 26, 2025), Nvidia's record revenue of $130.5 billion jumped 114%, while adjusted EPS of $2.99 soared 130%.
In its 2026 first quarter, Nvidia's revenue of $44 billion climbed 69% year over year and 12% quarter over quarter. Earnings per share, adjusted for a one-time charge related to its chip sales to China, came in at $0.96, rising 62%. While that's notable in its own right, it becomes even more impressive when viewed against the backdrop of triple-digit comps.
Management believes the company's growth streak will continue. For the second quarter, Nvidia is forecasting revenue of $45 billion, or growth of about 50%. However, given the company's history of issuing conservative guidance, the actual results will likely be higher.
This history of financial success has propelled a meteoric rise in the stock price, which has gained 1,130% since early 2023, and has helped Nvidia become the world's first $4 trillion company, when measured by market cap.
While the company's performance over the past few years has been nothing less than stunning, its track record is much longer. Over the past decade, Nvidia's stock has soared more than 30,000% (not a typo), driven higher by its consistently strong operational and financial results.
There's also the matter of Nvidia's valuation. Despite the company's growth trajectory and history of success, the stock is selling for roughly 30 times next year's earnings, an attractive multiple given the magnitude of the opportunity.
Taken together, its industry leadership, track record of innovations, visionary CEO, and large and growing market opportunity create a persuasive argument for owning Nvidia stock. Add to that the company's stunning financial performance and reasonable valuation, and it's easy to see why Nvidia would be the one stock to own if I could own just one.
