Prediction: Nvidia Stock Will Be Worth This Much By Year-End 2026

Core Insights - Nvidia's market capitalization has increased from approximately $345 billion in November 2022 to $4.5 trillion, making it the most valuable company globally [1] - The company is positioned for significant growth, with projections indicating it could reach a market cap between $7 trillion and $9 trillion by the end of 2026 [14] Group 1: Market Position and Growth Potential - Nvidia's backlog is reported to be around $500 billion, with the order backlog growing exponentially due to new deals, including a significant agreement with Anthropic [2][3] - Major partnerships, such as a $38 billion deal with OpenAI and a $20 billion licensing agreement with Groq, are expected to enhance Nvidia's revenue streams [4] - The company is projected to capture over 60% of big tech's infrastructure spending in AI, with potential data center revenue reaching between $320 billion and $330 billion by 2026 [6][7] Group 2: Valuation and Financial Metrics - Nvidia's current market cap is valued at approximately 27 times its trailing-12-month data center sales, which generated $167 billion over the past year [11][12] - If Nvidia doubles its data center sales while maintaining its valuation profile, it could be valued at nearly $9 trillion, or around $7 trillion if the market cap to sales ratio compresses [12] - The company's price-to-sales ratios have compressed over the past year, suggesting a shift in market perception towards a more mature business model [8][10]