Meet the supercharged growth stock that will hit $10 trillion by 2030, according to a Wall Street analyst

There is no denying that Artificial Intelligence (AI) It has been generating a lot of buzz since the beginning of last year. Recent technological advances have taken these algorithms to the next level, allowing them to generate original content of all kinds, improve productivity and streamline processes.

Companies at the forefront of this trend have benefited from these technological advances. In fact, six of the seven most valuable companies in the world, when measured by market capitalizationhave embraced the paradigm shift of generative AI and have bet on profiting from these next-generation systems. Topping the charts are Apple and Microsoftthe only two companies that currently have a market capitalization of more than $3 trillion.

However, one company that seems destined to make a name for itself as a founding member of the $10 trillion club is Nvidia (NASDAQ: NVDA)The graphics processing unit (GPU) pioneer is hot on the heels of the current leaders with a market capitalization of $2.8 trillion, but looks set to break new ground.

Let's look at the numerous growth drivers that could take Nvidia stock to new heights.

Shall we play a game?

A quarter of a century ago, Nvidia revolutionized the gaming world when the company pioneered the GPU, which produced realistic visuals in video games. The secret to their success is parallel processing, or the ability of these advanced chips to process a multitude of mathematical calculations simultaneously. It wasn't long before Nvidia realized the enormous potential of this discovery and set about adapting this technology to a host of other applications.

Since then, the company has adapted GPUs to power cloud computing, data centers, machine learning, autonomous driving, generative AI, and more.

The tale of the tape

Over the past 10 years, Nvidia’s revenue has grown by 2,350% (as of this writing), while its net income has increased by 9,490%. While it hasn’t all been a straight line, the company’s consistently strong performance has fueled impressive growth in its stock price, which has soared by 23,110%.

In the second fiscal quarter of 2025 (ended July 28), Nvidia posted record revenue of $30 billion, up 122% from the same period a year ago and 15% higher than the same period a year ago. This drove diluted earnings per share (EPS) of $0.67 up 168%. The star of the show was the data center segment, which includes processors used for cloud computing, data centers, and of course, AI. The segment’s revenue increased 154% to $26.3 billion, driven by insatiable demand for AI.

There is likely to be much more demand in the future. Analysts at Goldman Sachs Research estimates that the economic impact of AI will be $7 trillion by 2030. In addition, an improving macroeconomic context could help accelerate its adoption, which would be a boon for Nvidia.

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No A one trick pony

There's no doubt that AI is Nvidia's biggest opportunity right now, but it's far from the only one.

Let’s not forget that until recently, gaming GPUs were the company’s cash cow, with AI taking a backseat. During the economic crisis, many gamers made do with their existing processors, waiting for the spectre of inflation to subside. As the economic outlook continues to improve and graphics cards reach the end of their lifespans, there’s plenty of pent-up demand that could fuel a long-overdue upgrade cycle – and Nvidia stands to benefit the most.

In the first quarter, Nvidia controlled 88% of the desktop GPU market, according to Jon Peddie Research. And demand is expected to skyrocket over the next five years, rising from $3.6 billion in 2024 to $15.7 billion in 2029, a compound annual growth rate (CAGR) of 34%, according to Mordor Intelligence. The gaming processor market is poised for a recovery, a trend that benefits Nvidia.

There’s also the data center market, which will be boosted by the growing adoption of cloud computing. Many companies are moving their data to the cloud, forgoing local storage, another trend that favors Nvidia. According to Angelo Zino, senior equity analyst at CFRA Research, it controls about 95% of the data center GPU market.

The data center market is estimated to grow from $302 billion in 2024 to $622 billion in 2030, a compound annual growth rate of 10%, according to data provided by Prescient and Strategic Intelligence Market Research.

Nvidia’s dominance and market growth put the company in pole position for another opportunity. Generative AI is not the only option available. The company has a virtual monopoly on the market for machine learning, an established branch of AI. The company controls about 95% of the company’s shares. that market, according to New Street Research.

There are other areas that aren't critical to Nvidia's growth but could eventually make a significant contribution. Self-driving cars aren't ready for prime time yet, and quantum computing is still largely experimental, but either could be a catalyst for the next stage of Nvidia's growth.

This helps illustrate the point that while generative AI is at the heart of Nvidia's recent growth, other opportunities abound.

The road to $10 trillion

Nvidia currently has a market cap of roughly $2.78 trillion, meaning it will take a 260% share price gain to push its value to $10 trillion. According to Wall Street, Nvidia is poised to generate revenue of nearly $113 billion in fiscal 2025, giving it a forward price-to-sales (P/S) ratio of roughly 24.7. Assuming its P/S remains constant, Nvidia would need to grow revenue to roughly $405 billion annually to sustain a $10 trillion market cap.

Wall Street currently forecasts Nvidia's revenue growth of 47% annually over the next five years. If the company hits that level, could will reach a market cap of $10 trillion as early as 2029. But don’t just take my word for it. Beth Kindig, CEO and chief technology analyst at the I/O Fund, has an estimate that’s eerily similar:

Given the company's multiple growth avenues and The ever-accelerating adoption of AI means Kindig has hit the nail on the head.

Of course, there is one caveat: Given Nvidia’s parabolic rise since the beginning of last year, any weakness from the company (real or perceived) could sink the stock price, at least temporarily. We saw one example recently, when Nvidia lost nearly a quarter of its value in six weeks between June and July, as investors became nervous about rumors of a delay in the launch of its next-generation Blackwell platform.

That said, I think 36 times forward earnings is a reasonable price to pay for a company that is at the forefront of one of the biggest paradigm shifts in technology in a generation.

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Danny Vena The Motley Fool has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, Microsoft, and Nvidia. The Motley Fool recommends the following options: January 2026 $395 call options on Microsoft and January 2026 $405 call options on Microsoft. The Motley Fool has a Disclosure Policy.

Meet the supercharged growth stock that will hit $10 trillion by 2030, according to a Wall Street analyst Originally published by The Motley Fool