Nvidia’s stock is poised for significant growth, particularly as spending on artificial intelligence (AI) infrastructure is anticipated to increase substantially in the coming years. Taiwan Semiconductor Manufacturing, a major player in the semiconductor industry, forecasts its AI chip revenue growth will surge at a mid-to-high 50% annual rate through 2029. Complementing this, Cathie Wood of Ark Invest projects that capital expenditures for data centers will triple, potentially reaching around $1.4 trillion by 2030.
As of the latest trading session, Nvidia’s stock is experiencing a slight decline, down 0.72% to $191.13. With a market capitalization of approximately $4.6 trillion, the stock has a 52-week range between $86.62 and $212.19. The company boasts a gross margin of 70.05% and offers a modest dividend yield of 0.02%. The current day’s price fluctuation has seen shares range from $189.47 to $194.49, with a trading volume of 179 million shares.
Nvidia stands out as a leader in the AI chip market, primarily due to its graphics processing units (GPUs), which are critical for AI workloads. The company solidified its dominant position by leveraging its CUDA software platform and networking capabilities. Nvidia controls roughly 90% of the GPU market. Additionally, Wood identifies networking as one of the fastest-growing sectors within AI infrastructure, further benefiting Nvidia. In the latest quarter, Nvidia’s networking revenue soared by 162% to $8.2 billion, significantly outpacing the 56% growth in compute-related revenues.
Looking towards future projections, analysts suggest Nvidia may generate revenue of around $213.4 billion for its recently concluded fiscal year, which ended in January. If the company maintains a compound average revenue growth rate of 37.5% through 2031, its revenue could approach roughly $1.4 trillion. This projection includes an estimated 50% revenue growth next year, tapering to 25% by fiscal 2032.
Assuming Nvidia’s adjusted operating expenses increase by an average of 7% quarter over quarter until 2031 and that gross margins stay around 73%, the company could see adjusted earnings exceeding $792 billion in that timeframe, translating to approximately $32.50 per share based on the current share count of 24.3 billion. Analysts expect that a price-to-earnings ratio of 20 to 25 based on these fiscal year 2032 projections could elevate Nvidia’s stock price to between $650 and $815 by the end of 2030.
A breakdown of projected financial metrics from fiscal years 2027 to 2032 reveals significant revenue and earnings growth. Revenue is expected to reach $320 billion in fiscal 2027, escalating to $1.42 trillion by fiscal 2032. Correspondingly, earnings per share could grow from $7.19 in fiscal 2027 to $32.58 by fiscal 2032.
Given this rosy outlook, Nvidia’s stock remains an attractive option for investors, indicative of the company’s strong position in a rapidly expanding market.
