Nvidia Stock Growth and Future Predictions
Nvidia has seen its stock price rise by about 525% over the last three years, establishing itself as a standout performer in this period. While another massive increase like that seems unlikely in the next three years, there’s a good chance the stock will still see significant growth.
Nvidia Expects Tremendous Growth from New Chips
The success of Nvidia is closely linked to its advancements in AI. The longer the company invests in these technologies, the better it could perform in the stock market. A lot of major companies are currently directing their cash flow toward constructing new data centers, which will also benefit from increased spending on AI. However, investors should pay attention to how expenses are divided. Many data centers announced last year are still being built, meaning a notable portion of funds is going toward infrastructure rather than chips and hardware. This indicates that Nvidia’s revenue could continue to grow in the years ahead, which is supported by the company’s optimistic forecasts.
During Nvidia’s GTC 2026 conference this month, CEO Jensen Huang voiced confidence that cumulative sales of the Blackwell and Rubin chips will achieve $1 trillion by the close of 2027. In a previous conference, he had projected sales of $500 billion for 2025 and 2026. This implies that Nvidia is on track to surpass $500 billion in AI chip sales by 2027, while Wall Street analysts currently estimate around $480 billion. This aligns with a notable sentiment among analysts that Nvidia’s growth potential might be underestimated.
Now, that’s just for the second year of the plan. What’s in store for the third year? It’s a bit uncertain, but predictions indicate an acceleration in AI development through 2030, according to Nvidia’s forecasts and other analyses. Analysts project Nvidia’s revenue could rise by another $110 billion from the end of this fiscal year to the next. Adding this to the projected $480 billion raises Nvidia’s potential total revenue to about $590 billion. Round that up to $600 billion, as Wall Street may have a more optimistic outlook for next year.
If Nvidia can keep a 50% profit margin, and if the stock maintains a reasonable three-year price-to-earnings ratio of 30, we could see Nvidia’s stock price hitting around $370 per share. Given that it closed trading last Friday under $168, this implies the stock price could more than double within three years, making it a compelling buy at this moment.
