Investing in the stock market is described by some as a high-stakes game, especially when it comes to individual stocks like NVIDIA NVDA.

Known for its volatility and powerful growth potential, NVDA is a favorite stock among investors seeking considerable returns. Still, with explosive potential comes explosive risk, and the decision to invest a huge amount of money in a single stock requires careful consideration.

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This is the crossroads a Reddit investor found himself at. An NVDA investor with a $130,000 cash reserve and a high-stakes plan to invest heavily in the tech giant, the poster is in his mid-30s and has been holding NVDA shares since 2019. He currently owns 2,100 shares, bought initially for $20,000, which have grown significantly in time.

Over the last two years, the investor has been building his stack of money, which now reached $130,000, waiting for the share to drop below $100 to move $100,000 into the market.

“I own about 8 stocks total but I really believe NVDA is undervalued right now. Thoughts on this and if I should do it differently?” he wrote.

His post sparked a lively discussion in the comment section, so let’s analyze Redditors’ suggestions.

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$100,000 in NVDA Only? Reddit Debates the Investor’s Plan

Diversify Across Multiple Stocks

Many commenters suggested the poster avoid putting the whole $100,000 into NVDA, and instead diversify across several stocks or sectors.

“Spread it over at least five different stocks. Preferably not all in tech, but also in other fields of business. If AI gets hit hard, at least still make some possible pharmaceutical or retail gains,” a comment says.

“Spread it out,” another user recommended.

One Redditor encouraged the poster to put the money into the market if he has other investments but to avoid going all-in in NVDA.

“As long as you have other investments then go for it. Just don’t go all in just into Nvidia. Have a diversified portfolio,” he said.

A user shared the fact that he agrees with the poster’s belief in Nvidia, but suggested he split the purchase with a particular fund.

“I believe in Nvidia’s fundamentals; however, I don’t look at my retirement as a gamble or a game. So I personally believe in being well diversified, but if you really believe heavily in Nvidia as many of us do, then allow me to suggest… When you decide to buy more Nvidia, I’d split the purchase with the mutual fund [Fidelity Select Electronics Portfolio FSELX] to help spread some of the risk out of the sector. My and everyone else’s return on FSELX over the last five years has been north of 200% so it’s a solid buy. Just my opinion,” he wrote.

“Why not wait until the market reaches the bottom and then make educated decisions? Also, don’t forget diversification,” a comment reads.

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Consider Alternative Strategies

Several commenters recommended the investor alternative strategies to mitigate the risks of market timing, including dollar-cost averaging and selling puts to generate revenue while waiting for the $100 entry point.

“What happens if it doesn’t reach $100? Is this the only plan for your cash? If so, dollar cost into it in case it never makes it,” a Redditor suggested.

One commenter recommended a similar approach, advising the investor to split the investment into several buys.

“Split and buy, maybe in four parts. It is essentially like [dollar-cost averaging], but not exactly. Say your first entry is at $100; however, it does average your cost in case it goes down another 10%-20% below $100. But whatever I do, I'd not rush into entry and wait for a few more weeks,” the commenter wrote.

Two Redditors came up with a more advanced strategy, suggesting the poster sells puts to generate income.

“Sell 13 puts now with a $100 strike. That way, if it never gets there, at least you made some money anyway.”

“Sell a put, I guess. At least get paid for buying at $100,” another comment reads.

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