Here's Why Everyone Is Talking About Nvidia Stocks and What Pros Want Retirees To Keep in Mind
When it comes to the stock market, even a "sure thing" can be a gamble. However, one stock has been on a steady upswing lately, thanks to the growing demand for its products. Chances are you've heard people talking about NVIDIA's stock and the company's anticipated $355 billion in earnings.
Now, experts are weighing in on what that means and whether retirees should take the risk and buy stocks like NVIDIA.
What is Going on With NVIDIA's Stocks
NVIDIA is a semiconductor company founded in 1993 that designs graphics processing units (GPUs) and related software, according to Igor Pejic, author of the forthcoming book Tech Money: A Guide to the New Game of Technology Investing. These days, NVIDIA is using its products to train large AI models.
"So the explosion of generative AI created enormous demand for NVIDIA chips," Pejic explains. "Other chip manufacturers were incapable of keeping up with NVIDIA's edge." This has transformed the company into a leader among publicly traded stocks, seemingly making investors tons of money at every turn.
Related: A Raise at Work May Not Reduce Your Money Stress, But This Might
Retirees Should Proceed With Caution
As I mentioned, investing in stocks is always risky, and Pejic says tech stocks are especially prone to volatility. "NVIDIA behaves like any typical tech stock," he explains, calling it highly volatile and reactive to market swings. "For long-term investment horizons, this is not an issue, as there are more bull runs than recessions and the bull runs last longer." However, Pejic says that those who aren't in it for the long haul can risk taking bigger losses.
Evan Mills, Associate Financial Advisor at Scholar Advising echoes that advice, saying that stocks like this are "growth-oriented," which isn't always in the best interest of retirees. "That's not to say you shouldn't have some type of growth allocation in your portfolio, but having it concentrated in a single stock like NVIDIA can cause a lot of concentration risk," he says.
"We saw just the other day that even though NVIDIA posted record earnings, their stock still dropped, because the bar was so high that even great earnings failed to meet expectations," he continues, saying that this is just the kind of stock this is.
And while Mills says that growth isn't necessarily a continued paycheck for retirees, it's good to have some growth in a portfolio, especially if you're staying invested for the long term. But, just don't expect it to be a stable ride, no matter what type of tech stock you invest in. "NVIDIA is kind of like a race car. It's fast-moving, it's impressive, obviously what they're doing is super impressive," he says. "But it's not your family sedan that's going to be reliable and something you can count on for the long run."
And, in retirement, when you have less time to recoup your losses and manage downturns with your investments, it sounds like the family sedan is exactly what you should be looking for.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
Copyright 2026 The Arena Group, Inc. All Rights Reserved
This story was originally published May 22, 2026 at 8:54 AM.