Nvidia Poised to Hit $10 Trillion Market Cap by 2028
Nvidia (NASDAQ: NVDA) is on track to achieve a $10 trillion market cap by the end of 2028, according to predictions by Keithen Drury of The Motley Fool. Currently valued at $5.6 trillion, the company is projected to surpass the $6 trillion mark by the end of 2026. Drury attributes this anticipated growth to Nvidia's strong performance and optimistic projections for 2027, with management expecting a 70% revenue increase in the next fiscal year.
Despite a common perception that Nvidia's stock is overvalued, Drury argues that the company is actually trading at a reasonable price. Nvidia's current price-to-earnings (PE) ratio stands at 29.5, which is typical for a large tech stock. Additionally, the company's revenue more than doubled year-over-year in its most recent quarter, and it trades at nearly 15 times next year's earnings, suggesting significant growth potential.
If Nvidia meets its projections and its stock rallies to 30 times earnings by the end of the year, it could double in value. This growth trajectory indicates that the company's market cap could exceed $10 trillion by January 2028. Beyond 2028, continued expansion in the artificial intelligence industry is expected to drive Nvidia's valuation even higher.
While Drury is bullish on Nvidia, The Motley Fool's Stock Advisor team did not include it in their list of top 10 stocks to buy. The team's average return of 936% underscores their track record of identifying high-performing investments, suggesting that investors should consider a diversified portfolio approach.