Key Points
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Nvidia’s expansion remains strong, driven by a surge in demand for AI accelerators.
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According to Gartner, sales of AI accelerators are expected to grow even more by 2026.
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Additionally, Nvidia benefits significantly from sectors outside of AI, suggesting a trend that could continue long-term.
Nvidia (NASDAQ: NVDA) has had a wild ride in the stock market during 2025. The company’s shares faced a downturn earlier this year due to restrictions on sales to Chinese customers and worries about AI infrastructure spending.
Despite this rough start, Nvidia’s stock has bounced back significantly over the past five months, rising by 32% so far in 2025. Investors are now questioning whether Nvidia can keep this positive trajectory into 2026.
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We’ll explore the factors driving Nvidia’s growth to gauge how likely it is to succeed through the end of next year.
Nvidia’s Continued Growth Potential
Nvidia has emerged as the largest company globally, largely due to its dominance in the AI chip market, where it commands about 80% of the space. The expectation is that growth will remain steady into 2026, as both businesses and governments plan to increase investments in cloud infrastructure to support the growing AI demand.
Market research firm Gartner estimates that spending on AI accelerators could reach $267 billion, with the market for custom Graphic Processing Units (GPUs) projected to grow from $140 billion last year to nearly $300 billion by 2026.
This trend isn’t surprising given the substantial revenue growth from major cloud computing companies like Microsoft, Oracle, Google, and Amazon. In addition, smaller firms like CoreWeave and Nebius are actively leasing GPUs for AI tasks, creating a significant backlog of contracts.
Nvidia sold around $100 billion worth of AI chips in 2024, indicating it held about 73% of the market at that time. If investments in AI accelerators do reach $300 billion, and Nvidia can maintain a 70% share, revenues from its data center division could hit approximately $231 billion in 2026.
This projection suggests Nvidia could see more than a threefold increase in AI accelerator revenues within just two years. Importantly, other segments of Nvidia’s business are thriving, which may further enhance its already robust growth.
Additional Growth Catalysts
Nvidia generated $28 billion in revenue during the last fiscal year, which ended in January. This figure is primarily driven by its data center GPU operations.
Other segments include networking, gaming, automotive, and professional visualization, with revenues from non-AI data center operations rising nearly 29% from the previous fiscal year. Nvidia is well-positioned for sustained growth in these areas, partly due to the rise of AI-enabled personal computers, smart vehicles, and digital twins.
If non-AI segments achieve 20% growth in 2025 and 2026, they could contribute around $40 billion to Nvidia’s revenue next year. This would set Nvidia’s total revenue potential for fiscal year 2026 at approximately $270 billion, aligning with consensus forecasts.
Interestingly, estimates for the coming year have risen significantly. It’s expected that firms relying on Nvidia’s GPUs for cloud AI applications will increase their spending.
If Nvidia reaches $280 billion in revenue next year and trades at a price-to-sales ratio of 20, its market cap could soar to $5.6 trillion, indicating a potential stock price increase of about 30% and suggesting even further growth is possible.
Considering an Investment in Nvidia?
Before buying shares of Nvidia, it’s wise to consider some points.
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