Artificial Intelligence company's stock approaches a $4 trillion market capitalization, as per one Wall Street analyst, who anticipates an additional 57% surge in value.
Nvidia Soars in AI Sector, Projected for Significant Growth
Nvidia, often referred to as the "AI chip king," continues to dominate the technology landscape, with analysts predicting a bright future for the company. According to Wall Street analyst Ananda Baruah, Nvidia's (NVDA) market capitalization is expected to reach approximately $1.2 trillion within the next 12 months.
The robotics and auto division of Nvidia is projected to experience a staggering 344% rise in revenue by the early 2030s. This growth is partly driven by the increasing demand for AI factories, which could create a pipeline worth $450 billion to $900 billion for Nvidia over the next few years.
Baruah also models data center revenue to more than double from $115 billion now to $367 billion by fiscal year 2028. This increase is due in part to anticipated increased spending by hyperscalers like Amazon and Microsoft on graphics processing units (GPUs) and accelerators.
The demand for AI accelerators and generative AI is expected to rise by $2 trillion by 2028, providing further opportunity for Nvidia's growth.
Despite facing challenges this year, including concerns about a rival AI chatbot from DeepSeek and tariffs from the Trump administration, Nvidia's stock has risen by nearly 15% this year and has reached a market cap of $3.86 trillion. If the price target is achieved, Nvidia's market cap would exceed $6 trillion.
Nvidia's CEO, Jensen Huang, has expressed optimism about the future of humanoid robots, stating that they could complete household chores and represent "one of the largest industries ever."
Given the elevated valuation, it may be best to practice dollar-cost averaging. Loop Capital Analyst Ananda Baruah has become Nvidia's biggest bull on Wall Street, issuing a $250 price target for the stock.
As of July 7, Nvidia is the largest publicly traded company. Hyperscalers are expected to increase AI-related infrastructure from 15% to over 50% by 2028, further solidifying Nvidia's position as a critical tech monopoly, according to analysts.
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