Nvidia Stock Price Could Double to $10 Trillion

Nvidia's stock price could potentially double in less than a year, according to analyst Keithen Drury. He believes the company's market capitalization will surpass $10 trillion, reaching as high as $10.65 trillion.

Drury points out that Nvidia holds an irreplaceable advantage in the GPU chip space due to its versatility and ability to support a broad range of applications. Additionally, the company has early visibility into future demand, giving it a higher degree of market foresight.

Nvidia's revenue growth trajectory is expected to continue at a rapid pace, with a projected 70% increase in fiscal 2028. Drury notes that for such a large company, this growth rate is remarkable, but Nvidia has repeatedly exceeded its own guidance during the AI boom.

The analyst uses Wall Street's fiscal 2027 revenue estimate of approximately $411 billion as a baseline and projects that trailing twelve-month revenue could reach $555 billion by this time next year. Assuming Nvidia maintains its current net profit margin of roughly 64%, earnings would reach approximately $355 billion at that point.

If the market assigns a 30x price-to-earnings multiple, the market cap would reach approximately $10.65 trillion. Drury compares Nvidia to Apple and notes that while Nvidia currently trades at a P/E ratio of approximately 27.5x, it is notably undervalued compared to its slower-growing counterpart.