For much of its existence, Nvidia (NVDA 3.13%) has been something of an enigma. Every time investors think they have the company figured out, it changes course and expands its market opportunity. While its graphics processing units (GPUs) are still the gold standard for rendering high-quality graphics in video games, they have been adapted to power scientific research, cryptocurrency, professional content creation, cloud computing, data centers, and — most recently — artificial intelligence (AI).
CEO Jensen Huang has an innate ability to anticipate opportunities and pivot the company to address them. That has driven impressive gains in the stock price over the past few years. Since the advent of AI in early 2023, Nvidia has risen 1,380%, and many believe there’s more to come.
One Wall Street analyst believes Nvidia is on track to gain an additional 98% over the next 12 to 18 months, making it the world’s first $10 trillion company.
Image source: Getty Images.
The numbers are compelling
Before we dive into the analyst’s logic, a look at Nvidia’s most recent results and upcoming opportunities presents a compelling picture. For its fiscal 2027 first quarter (ended April 26), the company delivered record revenue, which surged 85% year over year to $81.6 billion and accelerated 20% quarter over quarter. This drove adjusted earnings per share (EPS) of $1.87, which surged 140%.
Nvidia’s forecast is even more eye-catching, as management’s Q2 outlook calls for revenue of $91 billion, representing 95% growth.
Nvidia’s cash cow is still the GPU, which is the workhorse that powers the majority of AI workloads. Depending on who you ask, the company controls between 85% and 92% of the data center GPU market, an astonishing show of sheer dominance. Yet Nvidia isn’t stopping there.
The company has been pushing further into the CPU space, launching the Vera CPU, which is 1.8 times faster than existing x86 processors. Earlier this week, Nvidia also introduced the RTX Spark, an AI chip designed for PCs. While these opportunities pale in comparison to its GPU sales, they represent hundreds of millions of dollars in potential new semiconductor sales each year. For context, Nvidia generated total revenue of $216 billion in fiscal 2026, so these moves represent a sizeable opportunity.
Today’s Change
(-3.13%) $-6.97
Current Price
$215.84
Key Data Points
Market Cap
$5.4T
Day’s Range
$214.58 – $222.82
52wk Range
$138.83 – $236.54
Volume
116M
Avg Vol
166.9M
Gross Margin
74.15%
Dividend Yield
0.02%
A bullish take
Just last week, Tigress Financial analyst Ivan Feinseth issued a bullish call on Nvidia, maintaining a strong buy rating and increasing his price target to $425. For those keeping score at home, that represents potential upside for investors of 98% (as I write this).
The analyst cites “surging AI capital expenditures” and calls Nvidia “the core infrastructure engine in the AI factory era. The ongoing demand is driving Nvidia’s accelerating revenue, robust margins, and strong profits. He goes on to call it a “must-own core holding for the AI investment cycle.”
I think the analyst hit the nail on the head. The popular narrative is that AI adoption is slowing and that growing competition will eventually eat into Nvidia’s market share. The company has flipped that narrative by expanding into additional areas of the AI market — like the aforementioned CPU and PC opportunities — which will no doubt fuel further growth.
Most experts believe it’s still early days for AI, and Nvidia is well-positioned to benefit from these growing secular tailwinds. Moreover, the stock is selling for just 33 times earnings and 24 times next year’s expected earnings. That’s an attractive price to pay for a company expected to grow its revenue by high double digits over the next two years.
