Nvidia (NVDA) Poised for $6 Trillion Market Cap by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Market Prediction: In December 2024, I predicted that Nvidia (NVDA) would reach a $5 trillion market cap in 2025, a forecast that materialized in October, although the current valuation has pulled back to about $4.5 trillion.
- Revenue Growth: Nvidia's fiscal 2026 third-quarter revenue surged 62% year-over-year, reflecting robust market demand, with analysts projecting an acceleration to 66% growth in the fourth quarter, further solidifying its market leadership.
- Profitability: With soaring demand for AI computing hardware, Nvidia maintains pricing power, allowing it to generate substantial profits from each GPU and platform sold, demonstrating its strong market influence.
- Future Outlook: If Nvidia continues to trade at 40 times expected forward earnings over the next year, its stock price could approach $350, leading to an $8.4 trillion market cap; even at a 30 times forward earnings valuation, it would still reach $6.3 trillion, indicating strong potential returns for investors.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 183.320
Low
200.00
Averages
264.97
High
352.00
Current: 183.320
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
