In recent years, artificial intelligence (AI) has become the dominant narrative influencing the stock market, yielding mixed results for various companies. While some have seen their stock prices surge, others have been plagued by concerns over AI disrupting traditional software models, leading to significant declines in valuation.
Nvidia has emerged as a standout beneficiary of this trend. The company’s graphics processing units (GPUs) have been integral to the AI revolution, resulting in an astonishing 1,130% increase in its stock price since early 2023. Despite the stock’s impressive ascent, some investors worry that such rapid growth may be reaching its limits. However, not all analysts share this view.
Recently, a Wall Street analyst asserted that Nvidia’s stock still holds substantial potential for further gains, predicting that the company’s market capitalization could reach an extraordinary $7 trillion in the coming year.
In its fiscal 2026 fourth-quarter earnings report, Nvidia delivered robust results. The company achieved a revenue of $68 billion, a remarkable 73% increase year-over-year and a 20% increase from the previous quarter. This strong performance translated into adjusted earnings per share (EPS) of $1.62, representing an 82% year-over-year growth, and significantly surpassing analysts’ estimates of $66.2 billion in revenue and $1.54 in EPS.
Following this stellar performance, Matt Bryson, an analyst with Wedbush, maintained an “outperform” (buy) rating for Nvidia, adjusting his price target to $300. This adjustment suggests a potential price upside of 67% based on recent closing figures.
Bryson noted that Nvidia continues to demonstrate impressive growth, reminiscent of much smaller companies, despite increasingly large operating numbers. Specifically, the data center segment saw revenue surge 75% year-over-year, hitting $62.3 billion. Looking ahead, Nvidia’s first-quarter revenue guidance of $78 billion indicates a projected 77% year-over-year growth, further buoying optimism.
The conservative guidance Nvidia has issued historically adds credibility to Bryson’s forecast. The company has exceeded expectations for revenue and EPS in eight of the last nine quarters, showcasing management’s cautious approach.
As of now, Nvidia’s stock is priced at $183.23 with a market capitalization of approximately $4.5 trillion. Analysts project that should the stock price reach $300 within the next 12 to 18 months, the market cap could approach $7.3 trillion.
Nvidia’s CEO, Jensen Huang, has previously stated that data center infrastructure spending could hit $1 trillion annually by 2028. Bernstein analysts suggest that Nvidia captures nearly 30% of this spending, equating to a potential profit margin of $300 billion—far exceeding the $120 billion in net income recorded for fiscal 2026.
Combining these projections paints a compelling picture for Nvidia’s future trajectory, suggesting a viable path to a $7 trillion market cap over the next few years. Moreover, with a valuation of just 22 times forward sales, the stock remains reasonably priced, reinforcing the argument for Nvidia as a strong buy in the current market landscape.
