After the brilliant stock performance over the last few years, NVIDIA has developed into one of the most valuable stock market companies in the world. Now the AI giant is setting its sights on the $5 trillion mark.
• NVIDIA one of the most valuable stock market companies
• Share with brilliant performance
• Will the $5 trillion mark fall in 2025?
NVIDIA shares have staged a brilliant rally in recent years – driven by increasing interest in artificial intelligence (AI) and strong demand for AI-centric chips in various industries. While the chip giant’s stock rose by an impressive 238.95 percent in 2023, it rose by 171.18 percent in 2024.
Highest market capitalization: Battle for the throne
Meanwhile, a neck-and-neck race has developed between NVIDIA and Apple iGroup to become the world’s largest listed company. NVIDIA’s market capitalization is currently around $3.43 trillion, while Apple’s is around $3.67 trillion (as of January 8, 2025).
Numerous Wall Street experts predict that NVIDIA is likely to continue its upward trend this year. They continue to be extremely bullish and see the AI profiteer rising to a market value of five trillion US dollars in the new year 2025.
Analysts bullish on NVIDIA stock
Analysts at Bank of America (BofA) had already expressed extremely optimism in October. They said NVIDIA still has a “generational opportunity” in the AI accelerator space. Based on their price target, they implied a few months ago that the chip giant could have a market value of five trillion US dollars in 2025. For many market participants, this forecast does not seem unrealistic; after all, based on the current level, NVIDIA shares would “only” have to increase by around 46 percent (as of January 8, 2025).
NVIDIA has recently been able to delight its investors with strong figures: While sales have increased by an impressive 320 percent since the beginning of 2023, profits have even increased by around 1,340 percent. The group is still a leader in the field of GPUs. According to Yahoo Finance, BofA analyst Vivek Arya is certain that the Blackwell and the upcoming Ruby GPUs, which are expected for the third quarter of 2025, are likely to provide further impetus.
Hype about AI continues
Artificial intelligence is likely to remain one of the top topics on the market in 2025, and investments in this area are likely to continue to be enormous. As The Motley Fool reports, NVIDIA’s four major customers, which the company doesn’t disclose, accounted for about 40 percent of the AI giant’s revenue each quarter. It is expected that growth will continue to increase. “They’re the only ones in this. We expect others to benefit, but there’s only one selling these chips, and that’s NVIDIA,” said Yahoo Finance Wedbush analyst Dan Ives. And further: “The foundation is increasingly being formed by NVIDIA. That will not change.” Top companies such as Meta Platforms, Microsoft, Amazon and Alphabet are likely to continue to see strong demand for AI computing power in 2025, which will ultimately lead them to invest more money in NVIDIA, says The Motley Fool. In December, Wedbush analyst Dan Ives said of NVIDIA’s products: “The supply to demand ratio is 15:1.”
NVIDIA Numbers Outlook: Strong Forecasts
Against this background, the majority of Wall Street analysts are extremely confident for the new year. For the fiscal year 2026, which ends in January 2026, they expect revenue growth of 51 percent, while earnings per share growth is expected to be around 50 percent.
It remains to be seen whether NVIDIA can actually continue to grow as strongly as it has recently. However, given the continued strong demand expected, experts agree that reaching the $5 trillion hurdle is not at all unlikely.
Editorial team finanzen.net
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