There are some decent Cash ISA rates available at the moment. Today, some of these are paying interest of around 4.7%, meaning that £10,000 could grow to £10,470 over the next year.

But that doesn’t come close compared to what could be achieved with a Stocks and Shares ISA. With this type of ISA, an investor could potentially turn £10k into £12k, £15k, £20k, or even more over the next year!

Unlimited potential

The beauty of the Stocks and Shares ISA is that gains are theoretically limitless. Ultimately, they’re dependent on the investments you choose for your account.

Choose the right investments and you can make a ton of money. Just ask anyone who invested in Nvidia (NASDAQ: NVDA), Rolls-Royce, or Micron five years ago – these shares have all risen 900% or more over that time period.

Risk management’s crucial

Of course, it works both ways. If you choose the wrong investments, you can lose a lot of money with these accounts. So risk management’s important. With these ISAs, it’s important to think about diversification and position sizing.

What stocks could do well over the next year?

There are a lot of stocks in the market today with significant potential however, especially if an investor is willing to look within the US market. For example, here are some US stocks that analysts believe have the potential to rise 100% or more over the next 12 months:

• SpaceX
• Oracle
• IonQ
• Firefly Aerospace
• IREN

If an investor was to put £2,000 into each of these stocks and they all hit their 12-month price targets, £10,000 could grow to more than £20,000 (assuming GBP/USD rates stay relatively constant).

Here’s another five that analysts believe could rise 50% or more over the next year:

• Nvidia
• Micron
• Marvell Technology
• Palantir
• Rocket Lab

If an investor put £2,000 into each of these stocks and they all hit their 12-month price targets, £10,000 could grow to more than £15,000.

Nvidia’s worth a look

Now, price targets should never be relied upon. Often, they aren’t achieved within the specified time horizons. I certainly wouldn’t expect all 10 of those stocks to hit their price targets over the next 12 months. Realistically, only a few might.

But some of those names do look attractive to me right now. Take Nvidia, for example. This company – which specialises in high-powered AI chips and has a dominant market share – is still growing at a prolific rate. This financial year, its revenues are expected to rise about 80%.

Yet it’s trading like growth’s non-existent. Currently, it sports a forward-looking price-to-earnings (P/E) ratio of around 15, meaning it’s cheaper than the average stock in the US market.

I think it’s only a matter of time until the market wakes up to the opportunity here. At some stage, I reckon the stock is going to surge higher. I wouldn’t be surprised at all to see the 12-month price target of $297 hit. Even at that price, the stock wouldn’t be that expensive.

Of course, I could be wrong. And if it looks like AI spending is going to slow, this stock could underperform.

I believe Nvidia’s worth considering as part of a diversified portfolio though. I’ll point out that I recently bought a few more shares for my ISA as I see significant potential in the medium term.

Should you invest £5,000 in Nvidia right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nvidia made the list?

Edward Sheldon owns shares in Nvidia, Micron, Marvell Technology, and Palantir