After reaching a new all-time high on Wednesday, analysts are signaling more bullish momentum for Nvidia (NVDA) stock. The chipmaker’s stock is continuing its strong rebound since May’s earnings report. NVDA is up 6% in the last five days and 18% in the last month. While Nvidia’s stock has reached an all-time high, one banking firm projects even further gains not just for the shares, but the overall value of Nvidia. Indeed, analysts at Loop Capital see Nvidia on the path to a $6 trillion valuation.
Nvidia recently surpassed Microsoft to become the most valuable company in the world by market capitalization. The chipmaker is worth $3.791 trillion as of Thursday. Ananda Baruah of Loop Capital recently raised his Nvidia price target to $250, the highest forecast target on Wall Street. The rise implies an upside of 127% and a market cap of approximately $6 trillion. It is certainly larger than most expectations, however, Baruah says “the math just works.”
Loop Capital sees a coming surge in data center spending. Companies like Amazon and Microsoft continue to increase their investments in AI technology, giving a boost to revenue from big AI firms like Nvidia (NVDA). In addition, the firm estimates that spending on non-CPU compute like GPUs and AI accelerators could soar as hyperscalers boost non-CPU compute from around 15% of their infrastructure to 50%-60% by 2028. Baruah writes that Nvidia’s work “suggests that Hyperscale & AI Factory (Sovereign, Neocloud & Enterprise) Gen AI & AI Accelerator compute spending ALONE could increase to~$2.0T by 2028 using current compute economics.”
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Furthermore, Baruah sees Nvidia’s data center revenue more than doubling in the next few years, from $115 billion in 2025 to $367 billion in 2028. The analyst says Nvidia is well-positioned to capture a significant chunk of that demand, as the company “remains essentially a monopoly for critical tech,” giving it pricing power and room for margin expansion. “We’re entering the next ‘Golden Wave’ of Gen AI adoption,” Baruah wrote. “Nvidia is at the front-end of another material leg of stronger-than-anticipated demand.”
Questions remain about whether AI infrastructure demand will continue rising, as big tech companies spend more on building AI capabilities than they currently generate in revenue across multiple strategic areas. Nevertheless, Nvidia’s monopoly position in critical AI technology and pricing power spearhead the AI chip demand thesis moving forward through certain critical competitive advantages. Thus, a further climb in market capitalization and AI market dominance remains likely, perhaps encroaching that $6 trillion mark before 2028.
