Nvidia 
NVDA is one of the world’s largest companies, with a market capitalization of more than $3.3 trillion. Over the past decade, the chip designer has returned an impressive 27,496% to shareholders.
The company’s stock price has risen more than 1,000% in the past two years alone, as it is at the center of the artificial intelligence (AI) megatrend. Several companies are using Nvidia’s graphics processing units (GPUs) to develop and train generative AI platforms such as ChatGPT. Strong demand for these products enabled Nvidia to report $96.3 billion in revenue over the past four quarters, up from just $10.9 billion in fiscal 2020, which ended in January.
Sales more than doubled in fiscal 2024 to $60.9 billion, while sales growth accelerated nearly 200% in the past 12 months. The company’s upcoming Blackwell series of chips could be the semiconductor giant’s next major driver, boosting its valuation.
Let’s see if Nvidia stock can grow even bigger over the next decade and continue to deliver big returns to shareholders.
The bull case for Nvidia stock
Driven by strong demand, Nvidia remains the leader in the AI chip market. In fact, the semiconductor giant has a 75% to 90% market share in the AI chip space, according to various reports. This market leadership has allowed Nvidia to benefit from pricing power, ending the second quarter with gross margins of over 75% and operating margins of over 62%.
Morgan Stanley analyst Joseph Moore said after meeting with management that NVIDIA is, in fact, in 2025. It is likely to gain an even larger share in AI processors in 2020.”
Moore reiterated his “overweight” rating on NVDA stock with a price target of $150. The analyst added that the previous production impasse with Blackwell appears to have been resolved, with “strong confidence in the prior guidance that Blackwell’s revenue will be in the billions in the January quarter.” listed.
What’s next for NVDA stock?
The AI accelerator market is estimated to expand at a compound annual growth rate of 29% until 2030. In an investor presentation yesterday, Advanced Micro Devices said: 
AMD CEO Lisa Su predicted that the AI accelerator market will grow to a staggering $500 billion by the end of 2028, while introducing new chips to rival Nvidia’s offerings. Therefore, if Nvidia can maintain a 50% market share, its GPUs could make inroads. 250 billion dollars in 2028.
Rising demand for chips has helped Nvidia report five consecutive quarters of triple-digit sales and profit growth. Specifically, analysts expect sales growth to slow to “only” 42% in fiscal 2026 compared to the previous year.
By comparison, adjusted earnings are expected to expand from $1.19 per share in fiscal 2024 to $4.03 per share in 2025. So, at a price of 33 times forward earnings, NVDA stock isn’t that expensive considering it’s on track to increase adjusted earnings by more than 50x. % increase each year until 2029.
Of the 41 analysts covering NVDA stock, 35 recommend a “strong buy,” two recommend a “moderate buy,” and four recommend a “hold.” The average 12-month price target for Nvidia stock is $149.99, implying an 11.3% upside potential from current levels.
Nvidia’s competitiveness, strong growth outlook, expanding margins, and expanding AI market make it a top stock to own, even at a $3.3 trillion valuation.
On the date of publication, Aditya Raghunath did not have any positions (directly or indirectly) in any securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please see the Barchart Disclosure Policy here.
