Will NVIDIA have the opportunity to become a company with a market capitalization of 10 trillion dollars by 2030?

Over the past decade, NVIDIA (Nasdaq: NVDA)) has seen its stock price continuously rise. However, there are still differing opinions in the investment community regarding NVIDIA's future growth potential. Many experts consistently warn that AI will become a bubble, but there is no doubt that NVIDIA, as the AI leader, is building the infrastructure for global artificial intelligence. Nonetheless, unforeseen events (such as Trump suddenly making a statement) or political uncertainties) will occasionally arise. Based on the current stock price, NVIDIA's market capitalization is $4.9 trillion, making it the highest-valued company in the world. However, to reach a market capitalization of $10 trillion, the stock price would need to grow by 104%. Currently, NVIDIA’s stock price is approximately USD $207.04. Does NVIDIA have the opportunity to achieve a $10 trillion market capitalization by 2030? Below are the views of analysts from The Motley Fool, purely market observations, and not any investment advice.

Why is NVIDIA one of the hottest stocks in the market?

NVIDIA has become a leader in artificial intelligence, with its graphics processing unit (GPU) chips being at the core of driving generative AI. Despite some competitors, many analysts say NVIDIA still holds a market share of 70% to 95%. NVIDIA is also continuously launching new products, which are expected to further expand its market share. NVIDIA is rolling out vertically integrated hardware and software, enabling customers to run applications and data centers more easily and quickly. NVIDIA's CUDA software helps developers easily utilize NVIDIA's GPUs, data centers, and workstations, all of which are embedded in the systems. NVIDIA just delivered the world's smallest supercomputer, the DGX Spark, to Tesla. This is a supercomputer that is compact enough to fit on a user's desk.

Excluding the Chinese market, Nvidia's sales still grew by 56% year-on-year.

For the third quarter of fiscal year 2025 (ending July 27), Nvidia's sales increased by 56% year-over-year. This is quite impressive for any company, with total sales primarily driven by data center sales, which saw a year-over-year increase of 73%. These results do not include sales from the Chinese market, which had stagnated at one point due to government regulation. As the Chinese market returns to normal, the performance in the fourth quarter may be even more remarkable.

NVIDIA continues to launch new products, indicating that market demand is still expanding.

In the past five years, NVIDIA's stock price has increased by nearly 1,500%, with an average annual growth rate of about 74%. This surge is due to the market's recognition of the enormous opportunities in the field of artificial intelligence, which has reshaped various aspects of daily life, including shopping, education, work, and leisure. Many investors are pondering how much room for growth there is in the future and what role NVIDIA will play in future development opportunities. From the current situation, NVIDIA's momentum seems unlikely to end. NVIDIA is promoting its latest Blackwell architecture, which has already achieved significant results. Sales in the third quarter grew by 17% compared to the previous quarter. NVIDIA also plans to launch the next-generation artificial intelligence architecture, the Vera Rubin series, in 2026 to handle larger data loads.

NVIDIA may achieve a market capitalization of over $10 trillion by 2030?

NVIDIA has made a comeback to become the company with the highest market capitalization in the world, and it is also the first company to surpass a market capitalization of $4 trillion. Based on the current level, reaching $10 trillion does not seem difficult, but will it be achieved by 2030? According to analysts at The Motley Fool, if calculated with the current price-to-sales ratio of 30 times, its stock price would need to rise by 104%, and the total sales over the past 12 months would need to grow from the current $165.2 billion to $333 billion. To reach the $10 trillion goal by 2030 based on current sales, the compound annual growth rate (CAGR) over the next five years would need to be at least 15%. Even though the current growth rate has slightly slowed down, considering the average annual growth rate of revenue over the past five fiscal years has been as high as 64%, there is a considerable chance of achieving this goal. However, it should be noted that as growth slows, the price-to-sales ratio may also decline. In the case of a reduced valuation, revenue would need to grow at an even higher rate to reach $10 trillion within five years. Analysts believe that using NVIDIA's average stock price over the past decade at a revenue-to-PS ratio of 18.6, the estimated sales over the next 12 months, under a compound annual growth rate of 27%, should reach $538 billion. Considering the market demand for artificial intelligence, it is also possible for NVIDIA to become a company valued at $10 trillion in the future.

Does this article suggest that NVIDIA has the opportunity to become a company with a market capitalization of 10 trillion USD by 2030? Originally appeared on Chain News ABMedia.