Experts estimate: Nvidia can do it again
The chip giant Nvidia, whose market cap has crossed $5 trillion after a tenfold surge in five years, raises the question of whether it can repeat the feat. According to The Motley Fool, another leap would bring its valuation to a staggering $50 trillion, but growth potential remains significant given global spending on AI infrastructure.
The chip giant Nvidia, whose market cap has crossed the $5 trillion mark and become the world's largest company, raises a question among investors: can it replicate the tenfold surge of the past five years? Investment advisory firm The Motley Fool raises this question, noting that another leap would bring the company's valuation to $50 trillion—a staggering figure equivalent to a third of the expected global GDP in 2030. However, the economic potential of the chip market remains significant. Global spending on AI infrastructure shows no signs of slowing: the five largest tech companies are expected to spend around $800 billion this year, a sum projected to grow to $1.3 trillion by 2027. According to Dell'Oro, annual spending on data centers could exceed $3 trillion by 2030, with a third directed to AI accelerators. Nvidia controls about 80% of this market and is expanding into server processors. According to The Motley Fool, its revenue from AI accelerators alone could reach $800 billion in five years, compared to $194 billion from data centers expected for fiscal year 2026. Earnings per share are projected to grow by 52% annually, reaching $75.54 in five years, which could bring the stock price to $1,586—7.5 times its current price.