Nvidia Surpasses $5 Trillion Market Cap with Room for More Growth

Nvidia's market cap has crossed $5 trillion, and its revenue growth is impressive, but analysts believe there's still more to come. The company's proprietary model suggests a price target of $301.68, implying a 32.65% upside from the current quote.

The Vera Rubin production ramp, hyperscaler capital expenditure trajectory, and margin resilience are key drivers behind this prediction. Nvidia has already received purchase orders from major hyperscalers and AI clouds for its Vera Rubin product, which generates $40 billion in revenue per gigawatt compared to Blackwell's $25 billion.

The bull case rests on three catalysts: Vera Rubin orders, AWS' commitment to deploy an additional 2 million GPUs by fiscal 2029, and the top five hyperscalers' projected capex of $1.3 trillion in 2027. However, there are risks, including memory pricing, supply commitments, and China's restrictions on compute revenue.

Nvidia's stock price has risen 20.47% year-to-date and 31.57% over the past year. The company's gross margin has been impacted by memory pricing, but analysts believe it will recover to the 72-73% range in fiscal 2028.