Nvidia Stock Poised to Reach $10 Trillion Market Cap
Nvidia's stock is undervalued and poised for significant growth in the next year, according to recent projections. The company's market position as a leader in GPU computing units has given it access to information about future demand, including a projected $1.3 trillion in capital expenditures by AI hyperscalers in 2027.
Nvidia's internal projections call for revenue growth of 70% in the next fiscal year (FY 2028), which is an incredible rate for the world's largest company. The company has consistently exceeded its own guidance and has a long history of delivering strong results.
To estimate Nvidia's future value, analysts expect $411 billion in revenue for FY 2027, but this may be a conservative estimate. If Nvidia grows by 70% as projected, its trailing-12-month revenue would reach $555 billion, generating $355 billion in profits with a 64% profit margin.
Assigning a higher price-to-earnings multiple of 30 to Nvidia's stock yields a market cap of $10.65 trillion, far exceeding its current value of $5.25 trillion. This suggests that Nvidia is significantly undervalued and has the potential to double in value within the next year.