Prediction: This Unstoppable Stock Will Soar to $20 Trillion by 2030, According to a Certain Wall Street Analyst

Core Viewpoint - The bullish sentiment on Wall Street regarding Nvidia is highlighted by an analyst doubling their price target, suggesting Nvidia could become a $20 trillion company by 2030, despite concerns about slowing growth in the AI sector [1][3]. Company Performance - Nvidia has demonstrated exceptional growth over the past decade, with revenue increasing by 3,970% and net income by 15,320%, leading to a stock price surge of 23,490% [4]. - In the fiscal 2026 third quarter, Nvidia reported record revenue of $57 billion, a 62% year-over-year increase and a 22% sequential increase, with earnings per share rising 67% to $1.30 [5]. - The data center segment, which includes AI chips, saw sales increase by 66% to $51.2 billion, indicating strong demand for AI [6]. Market Outlook - Nvidia's management forecasts fourth-quarter revenue of $65 billion, representing a 66% year-over-year growth at the midpoint of guidance [6]. - Capital expenditures for AI-related projects are projected to rise from $250 billion in 2025 to $405 billion, with Nvidia holding a dominant 92% market share in data center GPUs [7]. Path to $20 Trillion - Nvidia's current market cap is approximately $4.4 trillion, requiring a 352% stock price increase to reach $20 trillion [8]. - Wall Street anticipates Nvidia will generate around $213 billion in revenue for fiscal 2026, necessitating revenue growth to about $919 billion annually to support a $20 trillion market cap [9]. - Analysts forecast annual revenue growth of 31% for Nvidia over the next five years, potentially allowing it to reach the $20 trillion market cap by 2030 [10]. Analyst Insights - Beth Kindig, a tech analyst, supports the bullish outlook, stating Nvidia needs to grow its data center revenue by 36% annually over the next five years to achieve the $20 trillion market cap, backed by a strong product roadmap and software ecosystem [11]. - Kindig previously predicted Nvidia would surpass Apple in market value, a forecast that has materialized, lending credibility to her current analysis [12]. Valuation Considerations - Nvidia's stock is currently trading at 45 times trailing-12-month sales, but its price/earnings-to-growth (PEG) ratio is 0.8, indicating it may be undervalued for a high-growth stock [13].