Forecast: The market value of this Artificial Intelligence (AI) company could reach an astounding $5 trillion by the year 2028.
Nvidia's potential to become the first $5 trillion company by 2028 is driven by its dominance in the artificial intelligence (AI) data center market. The company's GPUs power AI training and inference workloads for large language models and cloud hyperscalers, establishing Nvidia as the core technology provider in this space [1][3].
The AI data center market is expected to witness explosive growth, with capital expenditures tied to AI infrastructure projected to exceed $1 trillion by 2028 [1][3]. If Nvidia captures a significant portion of this growth, it could result in a dramatic increase in its revenue and profits.
Nvidia's high-profit margins and sustained growth in other business areas could also contribute to its potential valuation. With a profit margin of 55%, if Nvidia manages to maintain this level alongside 10% growth in other business areas, it could generate about $171 billion in profits by 2028, supporting high market valuations [1].
Moreover, Nvidia is accelerating its product innovation, moving from a chip release cadence of every two years to every year, helping it maintain a technological edge over competitors [3]. The company's automotive segment, focused on smart vehicles and autonomous driving, is also rapidly growing and expected to generate $5 billion in revenue soon, diversifying Nvidia’s growth drivers [3].
Analyst forecasts see Nvidia’s stock price potentially rising significantly towards $700-$900 by 2030, reflecting confidence in sustained growth and market dominance [2][4]. However, certain caveats exist, such as potential margin slippage or valuation decreases, which could impact Nvidia's journey to a $5 trillion valuation.
In FY 2025, Nvidia's data center division delivered $115 billion in revenue, while its non-data center divisions produced $16 billion [3]. Assuming other divisions won't grow and combined with the projected data center revenue, Nvidia's total revenue would be $216 billion, a 46% gain from today's revenue levels [3].
Global data center spending is expected to rise from $400 billion in 2024 to $1 trillion by 2028, indicating a growing demand for data centers [5]. This growth is happening faster than the growth in the search engine industry, where Nvidia's dominance in the data center GPU market is similar to Alphabet's dominance [6].
In conclusion, Nvidia’s leadership in AI data center hardware, robust profitability, accelerated innovation, and growing presence in the automotive AI sector are the primary drivers behind its forecasted rise to a $5 trillion valuation by 2028 [1][3].
References:
- Nvidia: The First $5 Trillion Company?
- Nvidia Stock Price Prediction 2030
- Nvidia Q4 2025 Earnings Call Transcript
- Nvidia Stock Price Prediction 2030 by Wallet Investor
- Global Data Center Spending to Reach $1 Trillion by 2028
- Data Center Spending Growth Outpaces Search Ad Spending
Nvidia's dominance in the artificial intelligence (AI) data center market, powered by its GPUs, positions it to capture a significant portion of the estimated $1 trillion in capital expenditures tied to AI infrastructure by 2028 [1][3]. The company's high-profit margins, projected to be around 55%, combined with a 10% growth in other business areas, could generate about $171 billion in profits by 2028, further boosting its market valuation [1]. With its accelerated innovation, Nvidia aims to maintain a technological edge over competitors and expand its growth drivers, such as the automotive segment, which is expected to generate $5 billion in revenue soon [3]. Thus, investments in Nvidia, with its dominance in AI technology, could be a promising avenue in finance for those looking to capitalize on the rapidly growing AI data center market.
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