Nvidia Stock Price Poised to Surge to $519 by End of 2028
Nvidia has been on an unstoppable run since early 2023, when its graphics processing units (GPUs) dominated the data center space by providing the necessary number-crunching capability for artificial intelligence (AI) processing.
The company's financial results have seen a 1,490% increase in revenue and a 4,120% jump in net income since then, with Nvidia's stock price rising 1,410% and its market cap swelling to $5.33 trillion, making it the world's largest public company.
Nvidia attributes this success to its Compute Unified Device Architecture (CUDA), which gives it a seemingly insurmountable moat by providing developers with the best performance from Nvidia's processors through more than 400 pre-built libraries and thousands of specialized tools.
The data center boom, driven by AI processing, is expected to drive $7 trillion in spending by 2030, according to McKinsey & Company. Nvidia dominates this market with an estimated 80% to 90% share.
Nvidia has forecasted a 70% revenue growth target for next year, which would see its revenue reach around $700 billion and profits of $447 billion, or earnings per share (EPS) of $18.55.