Where Will Nvidia Be in 5 Years?
Key Takeaways
The AI infrastructure leader has had a phenomenal run in recent years.
Article Overview
Quick insights and key information
4 min read
Estimated completion
investment
Article classification
July 27, 2025
03:15 PM
The Motley Fool
Original publisher
Interestingly, The excitement around artificial intelligence (AI) has helped drive the stock market higher in recent years
On the other hand, Industry analysts, executives, and even investors are starting to believe that this nology could vide a major lift to the economy in the long run
On the other hand, So, it's best to have exposure to this trend in your portfolio
There hasn't been a better way to play the rise of AI than owning Nvidia (NVDA -0, given current economic conditions
Moreover, The data indicates that stock has rocketed 1,530% higher the past five years (as of July 23) as it continues to register unbelievable growth
What the re reveals is now carries a market cap of $4. 1 trillion, making it the most valuable company on Earth (which is quite significant)
But where will Nvidia be in five years
Investors should think the situation holistically
Meanwhile, Image source: Nvidia
Meanwhile, Demand continues to be strong No company wants to get left behind in the AI race
Meanwhile, This's particularly true when it comes to training AI models and building related apps
On the other hand, All of this requires substantial computational power
Additionally, This need for power has supported sales growth for Nvidia
Moreover, The company sells powerful graphics cessing units (GPUs) that help run data centers
At the same time, This segment alone raked in $39
Nevertheless, 1 billion in revenue in the first quarter of 2026 ( April 27), a 73% year-over-year jump representing 89% of Nvidia's total revenue
Nevertheless, While it's not realistic to expect Nvidia to grow to the sky, Wall Street remains optimistic (an important development), given current economic conditions
In contrast, The consensus analyst forecast calls for the company's revenue to increase at a compound annual rate of 31 (something worth watching). 5% between fiscal 2025 and fiscal 2028
According to a UN Trade and Development report, the global market for AI will be valued at $4
Meanwhile, 8 trillion in 2033 compared to just $189 billion in 2023, which leaves plenty of upside for Nvidia in the years ahead, in today's market environment
Furthermore, That demand is driving incredible fitability
In the past five years, Nvidia's operating margin has averaged a fantastic 40%
Competition could bring this down over time, as it can result in pricing pressure with supply catching up to the insatiable demand
But Nvidia's leading position in the industry, coupled with the success of its CUDA software platform, make it the envy of its peers
There has certainly been a lot of hype surrounding AI (fascinating analysis)
Furthermore, Some believe the nology will completely alter our economy, disrupt industries, and force many people out of work as AI begins to automate and replace jobs
And GDP will supposedly get a boost along the way
On the other hand, However, a more reasonable outlook makes the most sense
Bill Gates, co-founder and former CEO of Microsoft, once said something along the lines of humans overestimating what a new nology could do in the short term and underestimating what it does in the long term
Nevertheless, Conversely, I think this is the right way to view the possible trajectory of AI
The massive amounts of spending on AI development can't continue indefinitely (an important development), considering recent developments
However, And no one has any clue what related innovations will be built far into the future
Settling somewhere in the middle is ideal
Moreover, But what if AI is a total bust
Moreover, Moreover, If it doesn't usher in a new wave of duct and service launches that create legitimate revenue-generating opportunities, then it might be all hype with no results
Additionally, Nvidia has been the single biggest beneficiary of the AI infrastructure boom
But if the ultimate financial returns don't support all its customers' capital expenditures, then the durability of demand and growth is a huge question mark over the next five years and beyond, in today's market environment
Nvidia stock could beat the market As of this writing on July 23, s of Nvidia trade at a forward price-to-earnings ratio of 39
Given its monster revenue and fit growth, as well as its dominant industry position, I don't view the valuation as being expensive
Therefore, I wouldn't be surprised if this AI stock beats the market between now and 2030, in today's financial world
In my opinion, it all depends on whether or not AI really is the game-changing nology that many believe it to be.
Related Articles
More insights from FinancialBooklet