If I Could Only Buy and Hold a Single Stock, This Would Be It
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Owning only a single stock is not a great strategy. If someone were to do that, they would be under-diversified, which is far too risky. Yet as a thought experiment, it...
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July 9, 2025
05:51 AM
The Motley Fool
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Owning only a single stock is not a great strategy
If someone were to do that, they would be under-diversified, which is far too risky
Yet as a thought experiment, it can be useful to imagine which stock someone should own in this scenario
I know which one I would pick: Nvidia (NVDA 1
Image source: Getty Images
Nvidia's current growth engine To get started, let's recall what has brought Nvidia to this point: its minent role within the fast-growing artificial intelligence (AI) ecosystem
Nvidia designs and sells graphics cessing units (GPUs), which are used to train and deploy AI models
And as the use and ity of AI models have exploded, so has Nvidia's data center, which includes its AI chip
In its most recent quarter (for the three months ending April 27), Nvidia's data center segment generated $39 billion in revenue, which was roughly 89% of the company's total revenue
What's more, estimates of Nvidia's total addressable market (TAM) continue to grow as the use cases for AI models expand
Analysts from Bank of America, for example, estimate that Nvidia's TAM could reach $2 trillion thanks to the rise of AI models
So, how quickly could Nvidia capitalize on this lucrative market
Soon, according to most analysts
According to predictions compiled by Yahoo
Finance, Nvidia's total annual revenue should rise to $200 billion this fiscal year (the 12 months ending on Jan
That represents an increase of 53% year over year
Furthermore, analysts expect Nvidia's revenue to increase to $250 billion the ing fiscal year
In other words, the AI revolution should vide plenty of fuel for Nvidia
Nvidia's next growth engine Investors, however, shouldn't have tunnel vision when it comes to Nvidia
Yes, it's true that large language models ChatGPT are the most well-known AI systems today, but new systems will emerge
In particular, the growth of robotics and autonomous vehicles is a trend quickly picking up steam
In recent weeks, Amazon announced it now has over 1 million AI-powered robots working in its fulfillment centers
The company now has more robots working in these facilities than human beings
Meanwhile, Tesla recently debuted its new robotaxi service, joining Alphabet-owned Waymo, as both companies now offer driverless transportation
Needless to say, the addition of millions of robots and robotaxis will present an enormous opportunity for Nvidia
The companies behind these advanced robotic networks need computing power -- and a lot of it
As they scale their robotic networks, they will also need to scale their AI infrastructure, too
Why Nvidia stock is a buy now There are two great reasons to own Nvidia stock right now
First, the enormous TAM of $2 trillion shows that Nvidia has plenty of room to grow in the coming years
Second, its TAM could expand even further as emerging nologies robotics and autonomous vehicles scale
So, while I don't advocate any investor owning just one stock, if I had to buy and hold only one, Nvidia is the stock I would choose today
Bank of America is an advertising partner of Motley Fool Money
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors
Jake Lerch has positions in Alphabet, Amazon, Nvidia, and Tesla
The Motley Fool has positions in and recommends Alphabet, Amazon, Bank of America, Nvidia, and Tesla
The Motley Fool has a disclosure policy.
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