Nvidia on Pace to Hit $10 Trillion Market Cap by 2030: Can it Sustain High Growth?
Nvidia is expected to reach a market cap of $10 trillion by 2030, according to recent predictions. To achieve this goal, the company would need to experience high-teen annualized returns over the next four years.
The AI infrastructure market is expected to grow significantly over the next five years, with spending on AI-optimized servers tripling and worldwide spending on artificial intelligence reaching $2.6 trillion in 2026.
Nvidia's total addressable market (TAM) would likely expand substantially if spending on AI servers increases, providing room for the company to grow. Analysts expect Nvidia's revenue to grow at an annualized rate of about 32% from fiscal 2027 through fiscal 2029, reaching $688 billion in 2029.
If Nvidia were to generate around $688 billion in revenue and convert 50% into net income, it would earn about $344 billion. Putting a 30-times earnings multiple on this profit would put the market cap at $10.3 trillion.