Have $5,000? Consider This Tech Stock and ETF for Long-Term Investment.

Important points

This year has been quite impressive for tech stocks, which dominate the S&P 500. Expectations are high, with a projected 22% growth by 2025. The momentum seems promising for continued growth.

Where to invest $1,000 now? Analysts have shared insights on what they consider the best 10 stocks to buy immediately.

Tech stocks have captured investors’ interest due to their transformative potential. These companies, involved in semiconductors, software, infrastructure, and electronics, are key players in driving innovation across various sectors like finance, energy, and consumer goods.

Investing in the semiconductor industry, in particular, appears to be a lucrative opportunity. Statista suggests that the global semiconductor market might grow from $583.38 billion this year to around $1.29 trillion by 2030, reflecting an annual growth rate of 10.24%.

If you have $5,000 to invest in technology, two semiconductor stocks stand out. One is on a remarkable upward trend, while the other is an Exchange Traded Fund (ETF) that has significant exposure to semiconductor stocks that are rapidly gaining value.

Both options offer solid prospects for wealth accumulation.

Stock selection: Nvidia

I personally prefer not to gamble with my investments. While there’s never a guarantee in the stock market, Nvidia (NASDAQ:NVDA) appears to be a nearly reliable choice.

Nvidia’s major breakthroughs became evident this year as the market acknowledged its importance. Its graphics processing units (GPUs) are essential for the future of artificial intelligence (AI), powering tasks such as machine learning and data analysis. An investment of $10,000 on January 1, 2023, would have ballooned to about $130,000 by now.

CEO Jensen Huang highlighted at a recent conference that “our GPUs are everywhere.” Just last month, Nvidia announced a partnership with Samsung, with plans for over 260,000 Nvidia GPUs to be installed in South Korea.

Furthermore, Nvidia recently inked a $1.15 billion deal with Deutsche Telekom to enhance AI capabilities in Europe, gearing up its Munich data center with up to 10,000 Nvidia Blackwell GPUs.

In the second quarter of fiscal 2026 (ending July 27, 2025), Nvidia reported revenues of $46.7 billion, a substantial jump of 56% year-over-year, with expectations for excellent numbers when it announces earnings on November 19.

Fund Selection: VanEck Semiconductor ETF

Diversification is key, which is why I’m a fan of ETFs. They allow for simultaneous investment across different companies within a specific sector, like semiconductors.

The VanEck Semiconductor ETF (NASDAQ:SMH) includes just 25 companies, with Nvidia being the most significant player.

The ETF tracks the MVIS US Listed Semiconductor 25 Index, which focuses on companies that derive at least half their revenue from semiconductors or related equipment. The SMH ETF has recently surged as semiconductor sales have increased. A $10,000 investment three years ago has now appreciated to over $38,000. The expense ratio for this fund is 0.35%, equating to $35 per $10,000 invested yearly.

How to invest $5,000

For this investment strategy, I’d allocate $2,500 to each stock. It’s true that Nvidia has a significant weighting in the SMH ETF. That essentially means more exposure to Nvidia, but I really believe in their growth trajectory.

Both of these investments are projected to generate returns of over 45% by 2025, which is impressive compared to the returns from the Nasdaq Composite. This presents a promising investment opportunity in today’s booming semiconductor industry.

Should you invest $1,000 in Nvidia right now?

Before purchasing Nvidia shares, it’s wise to consider some details:

The Motley Fool Stock Advisor team has highlighted what they believe are the best 10 stocks to invest in actively, and surprisingly, Nvidia isn’t one of them. They’ve identified 10 stocks with potential for considerable future returns.

For perspective, if you had invested $1,000 in Netflix when it was recommended on December 17, 2004, you’d now have about $595,194.* Similarly, had you invested in Nvidia when it was highlighted on April 15, 2005, your $1,000 would have grown to roughly $1,153,334.*

The notable takeaway is that the Stock Advisor program boasts an overall average return of 1,036%, a remarkable performance when contrasted with the S&P 500’s 191% over the same timeframe.

*Data as of November 3, 2025.

Disclosure: The Motley Fool has positions in and recommends Nvidia and various other semiconductor companies.