Nvidia Poised to Break the $10 Trillion Barrier Amid AI Frenzy

Nvidia Corp.'s (NVDA:NASDAQ) latest financial report has shed light on its explosive growth trajectory since the rise of artificial intelligence. The company's revenue doubled year-over-year, and its profits skyrocketed by 4,300%.

According to some analysts, Nvidia is a once-in-a-lifetime opportunity for investors. They argue that the company is expanding at an incredible pace, similar to Cisco Systems (CSCO:NASDAQ) during the internet frenzy. However, this analogy has one key difference: Nvidia's valuation is significantly lower than Cisco's at its peak.

At just 20X forward earnings, Nvidia's valuation is a mere fraction of Cisco's 130X multiple near the height of the dot-com boom. Furthermore, Nvidia's customers have demand and are unable to construct supply quickly enough, unlike Cisco's customers who built excess capacity that went underutilized.

Stephen McBride, author of the Jolt newsletter, believes that Nvidia will reach $10 trillion in value by 2028, provided its profits roughly double from current levels. He cites Apple Inc.'s (AAPL:NASDAQ) growth trajectory as a precedent, noting that Apple's valuation increased tenfold between 2011 and 2023.

McBride first touted Nvidia eight years ago and has seen it skyrocket by 3,000% since then. With the company poised to deliver $108 billion in revenue this quarter alone, some investors are taking a closer look at its prospects.