Nvidia Stock Price Target: Where Will It Be in 5 Years?

Core Viewpoint - Nvidia's stock has significant potential upside driven by increasing spending on AI infrastructure and its dominant position in the AI chip market [1][2]. Industry Insights - Spending on AI infrastructure is expected to rise, with Taiwan Semiconductor Manufacturing projecting AI chip revenue growth at a mid-to-high 50% annually through 2029 [1]. - Ark Invest forecasts that data center capital expenditures will triple to approximately $1.4 trillion by 2030 [1]. Company Performance - Nvidia holds about 90% market share in the GPU market, which is crucial for powering AI workloads [2]. - The company's networking portfolio revenue surged 162% last quarter to $8.2 billion, significantly outpacing its 56% compute revenue growth [3]. Financial Projections - Nvidia is projected to generate $213.4 billion in revenue for the fiscal year ending in January, with a potential revenue compound average growth rate of 37.5% through 2031, leading to an estimated revenue of around $1.4 trillion [4]. - If adjusted operating expenses rise at an average of 7% quarter over quarter and gross margins remain at approximately 73%, Nvidia could generate over $792 billion in adjusted earnings by 2031, translating to about $32.50 per share [5]. - A forward price-to-earnings ratio of 20 to 25 on fiscal 2032 projections could place Nvidia's share price between $650 and $815 by the end of 2030 [5]. Revenue and Earnings Growth Model - Projected revenue growth from FY2027 to FY2032 shows a steady increase, with revenue reaching $1.42 trillion by FY2032 and earnings per share growing to $32.58 [7].