Do you know Elon Musk’s single biggest holding in publicly listed stocks is Tesla? Before Tesla, his biggest holding was in Paypal. This method works for Musk as he is involved in operating the company. However, Musk’s way of giving it all to one stock is not ideal for passive investors who do not run that company. Though if I were to buy and hold only one U.S. stock, I would put my bet on Nvidia (NASDAQ:NVDA) at any given point.
Why would I bet on this U.S. stock?
Recently, Nvidia enjoyed its artificial intelligence (AI) rally, selling graphics processing unit (GPU) shovels in the artificial intelligence (AI) gold rush. The stock price surged 888% in 2023 and 2024 on the back of triple-digit growth in AI data centre GPU revenue.
Several analysts feared the 888% AI rally would slow Nvidia’s growth trajectory. Moreover, Trump tariffs and other U.S. policies could affect U.S. chipmakers, as chips are designed in the U.S. and manufactured in Taiwan by TSMC. If the 2018 trade war history repeats in 2025, Nvidia could again be caught up in the trade war.
Manufacturing Nvidia GPUs in the U.S.
Amidst geopolitical tensions, TSMC started building fabrication facilities in the U.S. in 2022. However, mass production is still in Taiwan.
After several delays, TSMC’s Arizona facility began production of 4-nanometre Nvidia GPUs in 2025. Bringing semiconductor manufacturing to the U.S. could boost Nvidia’s stock price by reducing its risk from the trade war. Bringing GPU manufacturing closer to home could reduce the risk of supply shortages and generate benefits in the long term.
Why do I say so?
AI chips are the next oil. In the AI age, a country’s supremacy will be determined by its computing power.
Nvidia GPU performance remains unbeatable
Nvidia’s GPUs remain unbeatable in performance. After all, it invented GPUs. As for China’s AI supremacy, the Asian country has not yet made a GPU that can compete with Nvidia. China’s AI edge is in software, not hardware, which makes Nvidia super relevant to the U.S.
Company-specific, Nvidia stock’s last two-year rally was driven by its Hopper architecture. The chipmaker has already started production of the next-generation Blackwell architecture, which will address future AI challenges. The company is also working on future technological needs. And not to forget, the autonomous driving revolution is yet to begin.
While I remain bullish on Advanced Micro Devices for its next growth cycle as its data centre chips come close to Hopper’s performance, I am bullish on Nvidia for its long-term growth.
Generative AI is just one form of AI
Remember, the PC revolution began in the late 1970s, and the smartphone revolution began in 2007. These technologies evolved over the years, driving the share prices of the market leaders, Intel and Apple, to new highs for over a decade.
Nvidia started working on AI back in 2016 when AI was more theoretical, as it needed a high computing infrastructure, which was made possible by Nvidia’s GPU computing. The AI revolution began in 2022, and the generative AI revolution has arrived. There is more to AI than meets the eye, and Nvidia will be at the forefront. No doubt, it will unlock more opportunities as AI evolves and reshapes the future.
How to invest in this U.S. stock
If you ask me for one U.S. stock I would buy and hold at least for the next 10 years, it would be Nvidia. Nvidia’s stock has dipped 29% from its 52-week high, creating an opportunity to buy the dip. The stock could continue to fall in 2025 amid U.S. policy uncertainty. Keep an eye on these dips and continue accumulating shares in your Tax-Free Savings Account (TFSA), which allows you to invest in U.S. stocks.
