Many companies have seen their share prices increase substantially over the past few years, as investors have become generally optimistic about the market. While that can be a good thing, it also makes it difficult to know which companies are more likely to stand the test of time, and which may be benefiting simply from a surge in investor interest.
To help sort through the noise, two stocks I think are worth putting $1,000 toward right now are Nvidia (NVDA -0.82%) and Costco (COST 0.15%). Both have carved out a unique space in their respective markets that they'll likely benefit from for years to come. Here's why.
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1. Nvidia
Many investors may be tired of hearing about semiconductor company Nvidia, but avoiding the stock now could be costly later.
For one, the transition by tech companies toward artificial intelligence is already well underway, and it's not ending anytime soon. Tech companies need high-powered data centers to run their AI systems, and Nvidia-designed semiconductors are the best available. The result of its lead in this space was a 56% jump in the company's data center sales in the most recent quarter to $41 billion, and Nvidia commanding an estimated 70% to 95% of the AI data center processor market.
Nvidia's stock has already soared 1,200% over the past three years, leading some to wonder if its impressive run is coming to an end. While similar returns over the next few years are unlikely, there's likely still room for Nvidia's stock to rise as tech giants continue their AI spending. Nvidia CFO Colette Kress estimates AI data center spending could reach up to $4 trillion over the next five years.
Finally, it's worth mentioning that AI isn't Nvidia's only long-term opportunity. Robotics and automation will likely be two key growth areas in the coming years, with tech and manufacturing companies needing more advanced systems. Nvidia believes its processors will fit perfectly into this growth narrative and has called robotics and automation (plus AI) a "multitrillion-dollar growth opportunity."
2. Costco
If tech isn't your cup of tea, then you might instead be interested in the consumer goods sector. Costco stock is an interesting investment idea right now, because the company benefits both when consumer spending is high and when customers want to be more budget-conscious. That may be increasingly important as job growth slows in the U.S. and as tariffs raise concerns about inflation.
Costco's stores are performing well right now: Sales increased 8% in Q3 to $62 billion, and its earnings per share jumped 13% to $4.28. E-commerce has also been a bright spot, with online sales rising 16% in the first 12 weeks of 2025.
Even if an economic slowdown is around the corner, Costco will likely weather it well. The company has the advantage of a very high renewal rate among its U.S. and Canadian members -- 93% -- and many view the annual membership fee as a reasonable expense to gain access to discounted items.
Costco CEO Ron Vachris said on the company's third-quarter earnings call, "In times of consumer uncertainty, our Kirkland Signature brand is uniquely positioned to provide our members with great quality and great values."
Additionally, the estimated average household income of a Costco member is $100,000, making the company less vulnerable to consumers cutting back during an economic slowdown. With strong renewals, rising sales and earnings, and an affluent membership base, Costco is well-positioned no matter what's happening with the economy.
When investing $1,000 into either stock, patience is key. Both Nvidia and Costco will face ups and downs along the way, but holding for the long term is how investors give themselves the best chance to build lasting wealth.
