Much ink has been spilled about the capabilities of artificial intelligence (AI), and for good reason. Since the inception of AI early last year, companies have flocked to the technology, which promises to streamline processes, create original content of all kinds and dramatically increase productivity. The potential has companies scrambling to reap AI’s windfall, and spending is rising at a blistering pace.
But in addition to its AI prowess, Nvidia has a number of other growth engines that could help propel the stock to new heights.
Nvidia pioneered the GPU in 1999 to render lifelike visuals in video games. This was made possible thanks to parallel processing, or the ability to perform a large number of mathematical calculations simultaneously. By breaking down a computing task into smaller, more manageable pieces, Nvidia revolutionized an industry, but that was just the beginning. The chipmaker quickly changed, applying the same technology to a number of other applications and breaking new ground in the tech landscape.
Nvidia GPUs are now a key component of data centers, cloud computing, autonomous driving, machine learning and, most recently, generative AI.
Over the past 10 years, Nvidia’s revenue has grown 2,300% (as of market close on Wednesday), while net profit has grown 8,460%. Although it has been a rollercoaster ride, the company’s continued strong financial performance has led to impressive growth in its share price, which has risen 29,050%.
In the third quarter of 2025 (ended October 27), Nvidia achieved record revenue of $35 billion, up 94% year-over-year and 17% sequentially. This delivered adjusted earnings per share (EPS) of $0.81, an increase of 103%. Driving the results was the data center segment, which includes chips used in AI, data centers and cloud computing. Revenue for the segment rose 112% to $30.8 billion, driven by unquenchable demand for AI.
Given that demand, the runway is long. Analysts at Goldman Sachs Research estimates that the AI market could reach $7 trillion by 2030. Furthermore, thanks to the improving economy, companies are more willing to invest in this new and revolutionary technology, a trend that will benefit Nvidia.
Increasing AI adoption is clearly Nvidia’s biggest opportunity, but there are others.
Before the advent of AI, gaming had long been Nvidia’s main growth sector. That changed in recent years when its dominance was taken over by AI. The segment still represents 10% of Nvidia’s revenue, and could see significant upside as the economy recovers. Inflation took its toll on the gaming industry as users had to make do with their existing graphics cards and wait for conditions to improve. Now, many industry experts believe that pent-up demand is about to be unleashed, triggering a long-awaited upgrade cycle, especially as we enter the holiday season.
Nvidia captured 88% of the discrete desktop GPU market in the second quarter, according to Jon Peddie Research. While industry-wide third-quarter results are not yet available, Nvidia’s dominance is not expected to change. Furthermore, demand for video game processors is expected to rise over the next five years, from $3.6 billion in 2024 to $15.7 billion in 2029, a compound annual growth rate (CAGR) of 34%, according to Mordor Intelligence. As a leading supplier of high-end gaming processors, Nvidia will likely benefit from these long-term tailwinds.
Let’s not forget the data center market, which was already experiencing robust growth thanks to digital transformation. As the demand for cloud computing grows, so does the need for data centers to support that growth. Nvidia controls an estimated 95% of the data center GPU market, according to CFRA Research analyst Angelo Zino. Additionally, the data center market is estimated to more than double, from $302 billion in 2024 to $622 billion in 2030, a compound annual growth rate of 10%, according to Prescient and Strategic Intelligence Market Research.
While generative AI is grabbing all the headlines, there are established branches of AI powered by Nvidia’s processors – including machine learning. The company dominates an estimated 95% of the shares That according to New Street Research.
Nvidia’s dominance and expectations for continued growth in each of these markets give the company plenty of additional low-hanging fruit to pick from.
Nvidia currently has a market cap of roughly $3.58 trillion, meaning it would need a 179% share price gain to take its value to $10 trillion. According to Wall Street, Nvidia is poised to generate sales of nearly $126 billion in fiscal 2025 (which ends in January), giving the stock a price-to-sales (P/S) ratio of around 28. Assuming the P/S holds steady, Nvidia would need to grow its revenue to roughly $352 billion per year to support a market cap of $10 trillion.
Wall Street currently predicts revenue growth for Nvidia of 47% per year over the next five years. If the company can hit that benchmark, then so be it could reaching a market capitalization of $10 trillion as early as 2028. While that may seem ambitious, I’m not alone in believing it’s only a matter of time. Beth Kindig, CEO and chief technology analyst for the I/O Fund, calculates that Nvidia will reach a market cap of $10 trillion by 2030:
We believe Nvidia will reach a $10 trillion market cap by 2030, or sooner via a rapid product roadmap, the impenetrable moat of the CUDA [Compute Unified Device Architecture] software platform, and because it is an AI systems company that provides components well beyond GPUs, including networking and software platforms.
Given the many growth paths ahead and the rapid and accelerating adoption of AI, I think Kindig has done her homework.
That said, Nvidia is not for the faint of heart. Last summer, the stock fell 27% in just six weeks between June and July as reports suggested the launch of the AI-focused Blackwell chips could be delayed. Since then, cooler heads have prevailed and the stock has soared to new heights. But the lesson remains.
Wall Street expects Nvidia to generate earnings per share of $4.20 in the 2026 fiscal year, which starts in late January. That works out to about 33 times forward earnings (at the time of writing). I think there’s an attractive price to pay for a company that provides the gold standard processors to power one of the most important technology shifts in a generation.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Danny Vena has positions in Alphabet, Amazon, Meta Platforms, Microsoft and Nvidia. The Motley Fool holds positions in and recommends Alphabet, Amazon, Goldman Sachs Group, Meta Platforms, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has a disclosure policy.
Meet the supercharged growth stocks expected to reach $10 trillion by 2030, according to a Wall Street analyst, originally published by The Motley Fool
