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Prediction: This Artificial Intelligence (AI) Stock Could Hit a $10 Trillion Valuation by 2035
NvidiaNvidia(US:NVDA) The Motley Foolยท2025-08-01 09:00

Group 1: AI Industry Potential - The world is entering a golden age of artificial intelligence (AI), with a potential total addressable market of $40 trillion [1][4] - Companies are investing billions in AI infrastructure, indicating strong belief in AI's transformative potential [1][4] - Data center investments are projected to reach $7 trillion over the next five years, supporting the growth of AI technologies [5] Group 2: Nvidia's Market Position - Nvidia has a dominant share of chips used in AI data centers, significantly boosting its financial performance [2][6] - The company's market capitalization has reached $4.2 trillion, with predictions of it growing to $10 trillion in the next decade [2][11] - Nvidia's revenue is expected to grow from $200 billion in fiscal year 2026 to $618 billion by fiscal year 2035, reflecting a sustained growth trajectory [11][12] Group 3: Future Developments and Sales - Nvidia has received U.S. government approval to resume selling H20 chips to China, potentially adding $15 billion in sales in the latter half of the year [9] - The company is advancing its superchip, Rubin, and its first custom CPU, Vera, which are expected to enhance performance in AI applications [10] - Analysts estimate Nvidia's sales will increase by 53% in fiscal year 2026 and 26% in fiscal year 2027, indicating strong ongoing demand [11] Group 4: Valuation Insights - Nvidia's current price-to-sales (P/S) ratio is 29, with expectations that it will need to trade at just over 16 times its estimated 2035 sales to achieve a $10 trillion valuation [13][14] - The stock's valuation has fluctuated between 20 and 40 since the AI boom began in early 2023, reflecting market volatility [13]