Unsurprisingly and arguably deservedly, Nvidia (NASDAQ: NVDA) CEO Jensen Huang has been bullish about his company for a long time, even predicting its already staggering – $5.2 trillion at press time on May 27 – market capitalization can go much higher in the next few years.
Indeed, looking at the firm’s track record in the 2020s and the valuation rise matched only by soaring revenue, it is easy to see where the expectation NVDA stock can move a lot higher comes from, especially with the forecasted profits – and indeed, the necessary sales – from artificial intelligence (AI).
While looking too far into the future is unreliable, Nvidia’s market capitalization in one year’s time – in the middle of the second quarter (Q2) of 2027 – can be gauged thanks to the efforts of Wall Street analysts.
Wall Street predicts Nvidia market capitalization in the next 12 months
Specifically, the most optimistic scenario for NVDA shares was provided by Baird on May 21 and would see the equity rise to $500 in the next 12 months.
Considering that Nvidia stock is trading at $215.86 at press time for a total company valuation of $5.2 trillion, meeting the forecast would make the semiconductor giant worth a total of $12.1 trillion.
Simultaneously, the average price target for the blue-chip chipmaker stands at $306.46, per the data Finbold retrieved from the equity analysis platform TipRanks on May 27, indicating an expected market capitalization increase of $2.2 trillion to $7.4 trillion.
On the other end of the spectrum, the most bearish Wall Street analyst – Fang Boon Foo from DBS – only partially agrees with CEO Jensen Huang and estimates NVDA shares could rise only to $250 in the next year.
Should this scenario play out, Nvidia would be worth $800 billion more at a $6 trillion market capitalization.
Nvidia stock fundamentals hint at a continued rally
Elsewhere, it is noteworthy that the semiconductor giant’s forward price-to-earnings (P/E) backs the bull cases far more than the bearish takes.
Additionally, it is reinforced by the impressive reported sales of the Blackwell, alleged excitement about the upcoming Vera Rubin and the standalone Vera CPUs, and, perhaps most importantly, the CUDA toolkit moat.
Still, the bearish points are not entirely moot. Investors tend to punish even strong results unless they also represent growth, with Nvidia being exceptionally vulnerable to the possibility between the expectations its previous performance set and its reliance on just a handful of unnamed clients.
Additionally, the slowdown and cancellations plaguing the many announced data centers also raise the question of how long customers will continue buying chips if there is insufficient infrastructure to plug them in and have them start generating revenue.
Featured image via Shutterstock
