Nvidia's Future Growth Potential is Huge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Should l Buy NVDA?
Source: Fool
- Impressive Earnings: Nvidia reported record revenue of $57 billion for Q3 FY2026, marking a 62% year-over-year increase and a 22% sequential rise, with earnings per share reaching $1.30, up 67%, showcasing the company's robust performance in the AI sector.
- Surge in Data Center Sales: The data center segment generated $51.2 billion in sales, a 66% increase year-over-year, reflecting the ongoing demand for AI and cloud computing, further solidifying Nvidia's market leadership.
- Optimistic Outlook: The company anticipates fourth-quarter revenue of $65 billion, representing approximately 66% year-over-year growth, while CEO's disclosure of a $500 billion backlog suggests significant revenue growth in the coming years.
- Market Value Potential: Analysts predict Nvidia's market cap could reach $20 trillion by 2030, requiring a 332% stock price increase, with expected annual revenue growth of over 34% in the next five years laying the groundwork for this ambitious target.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Successful Fundraising: In August 2025, Cohere raised $500 million, valuing the company at $6.8 billion, with investors including AMD, Nvidia, and Salesforce, reflecting market recognition of its capital-efficient model and strengthening its position in the competitive AI landscape.
- Improved Gross Margins: Cohere's gross margins averaged about 70% in 2025, expanding by 25 basis points year-over-year, demonstrating the company's ability to achieve sustainable growth by optimizing resource allocation and managing customer demand without being affected by market volatility.
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- Alphabet's Gemini Success: Alphabet's Gemini chatbot now boasts 750 million monthly active users, a 67% increase from nine months ago, and has secured a partnership with Apple to make Gemini the underlying AI model for an upcoming version of Siri, which is expected to generate billions in revenue for Alphabet.
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- Alphabet's AI Success: Alphabet's Gemini chatbot has reached 750 million monthly active users, a 67% increase in nine months, and its collaboration with Apple to integrate Gemini into Siri is expected to generate billions in revenue, further boosting its cloud computing growth.
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- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
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See More
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- China Market Recovery: Following the Trump administration's ban on Nvidia chip exports to China in April 2025, Nvidia is expected to resume exports, and if first-quarter revenue expectations reach $8 billion, it could lead to unexpected growth, significantly boosting market confidence.
- Surge in AI Giants' Investment: Major clients of Nvidia, including Alphabet, Amazon, and Meta, have announced capital expenditure plans for 2026, with expected spending of $175 billion to $185 billion, $200 billion, and $115 billion to $135 billion respectively, which will drive demand for Nvidia's chips and further solidify its market position.
- New Architecture Driving Growth: Nvidia's upcoming Rubin chip architecture offers significant efficiency improvements over the previous Blackwell generation, requiring only one Rubin chip for every four Blackwell chips for AI model training, which will encourage more companies to upgrade their GPUs, thus driving sustained growth for Nvidia.
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- AI Investment: The company is increasing its investments in artificial intelligence and machine learning to enhance its vehicles' self-driving capabilities, a strategy that will further solidify Tesla's leadership position in the electric vehicle market.
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