3 AI Stocks to Turn $10,000 Into $1 Million: June 2024

Stocks to buy

How long do you think you would need to turn three AI stocks and a $10,000 initial investment into $1 million? Five years? 10 years?

Well, rule of 72 gives you a bit of a hint. For your $10,000 investment to double in five years, you would have to achieve a 14.4% compound annual growth rate. To do it in 10 years, you’d need a 7.2% return. 

Based on Nvidia’s (NASDAQ:NVDA) one-year return of 216%, and assuming it could keep this up indefinitely, you could take $10,000 and turn it into $1 million in four years. It’s doable. 

However, over the past five years, Nvidia stock appreciated by 3,480%. That would take $10,000 to $348,000. Now, if you invest $30,000 ($10,000 for three stocks), you could achieve this feat with Nvidia-like performance. 

Here then are my three AI stocks to get you to $1 million over the next five years using $30,000 as your initial investment. 

Nvidia (NVDA)

In this photo illustration, a woman holds a smartphone with the Nvidia Corporation (NVDA) logo displayed on the screen

Source: rafapress / Shutterstock.com

The first $10,000 has to go to Nvidia. CEO and co-founder Jensen Huang has proven himself as a brilliant tactician and leader. Of all the S&P 500 companies, his loss would be the hardest to recover from. While it’s true that no one is irreplaceable, Huang comes close. 

Fortune recently covered an example of Huang’s leadership style. It described how the CEO doesn’t do one-on-one meetings with any of his 55 direct reports. He avoids unnecessary meetings. Now there’s someone I would work for. No command and control management for Huang. In a recent quote to Fortune, Huang said:

“They never hear me say something to them, that is only for them to know. There’s not one piece of information that I somehow secretly tell the staff; I don’t tell the rest of the company. In that way, our company was designed for agility. For information to flow as quickly as possible. For people to be empowered by what they are able to do, not what they know.”

It’s not hard to understand why Nvidia is the number one AI investment of the next decade. 

Broadcom (AVGO)

broadcom (AVGO) logo outside office building

Source: Sasima / Shutterstock.com

Broadcom (NASDAQ:AVGO) is quickly becoming the second-most important company amongst AI stocks over the next decade. The company reported Q2 2024 results June 13. It beat earnings estimates on the top and bottom lines. CNBC reported Goldman Sachs analyst comments post-earnings:

“Alongside Nvidia, we view Broadcom as a critical piece to the ongoing AI infrastructure build-out, and reiterate our Buy rating on the stock with 8% potential upside (vs. AVGO’s after-hour price of $1,713) to our updated 12-month price target of $1,850 (from $1,550 prior).” 

Goldman Sachs wasn’t the only one to raise its price target. At least 19 Wall Street firms did so after the strong performance and guidance. In 2024, it expects to generate $11 billion in AI revenue, accounting for 22% of its projected revenue of $51 billion. 

As if earnings weren’t enough good news, Broadcom also announced that it would split its stock 10-for-1 on July 15. 

Like most stock splits over the past couple of years, the company’s doing it to make its shares more accessible to retail investors. Currently trading around $1,735, a 10-for-1 stock split brings the price of a share down to $173 — a much smaller chunk for the Average Joe. 

Amazon (AMZN)

What Would Happen to Amazon Stock If AWS Was Spun Off?

Source: Benny Marty / Shutterstock.com

When it comes to revenue levers to pull, few companies match Amazon’s (NASDAQ:AMZN) firepower. AI being one of them. 

Interestingly, reports are circulating suggesting Amazon blew its chance for Alexa to dominate AI. Apparently, employees left because Alexa generative AI, they felt, would never be ready, or if so, way too late in the game, Fortune reported. 

In May, I discussed why Amazon’s best days were still ahead. 

One of the main reasons, I argued, was that Amazon Web Services (AI), which generates a large portion of the company’s operating profits, would continue to stay that way. Amazon CEO Andy Jassy put long-time AWS executive Matt Garman, who was AWS’ first product manager in 2006, in charge of the company’s Golden Egg. On May 23rd I wrote:

“If Amazon is to remain a cash flow machine, Garman will have to transform AWS from a cloud provider to an artificial intelligence (AI) leader. If there’s one thing I’ve learned about Amazon, it is that it is more than capable of meeting the challenge.” 

Between AI, advertising and Prime, the company has plenty to help its shares double or triple over the next 5-10 years. 

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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