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

There’s no denying that artificial intelligence (AI) has been generating a lot of buzz since the beginning of last year. Recent technological advances have taken these algorithms to the next level, enabling them to generate original content of all stripes, improve productivity and streamline processes.

Companies at the forefront of this trend have taken advantage of these technological advances. In fact, six of the world’s seven most valuable companies, as measured by market capitalization, have embraced the paradigm shift of generative artificial intelligence and laid claim to the profits from these next-generation systems. They are at the top of the charts Apple and Microsoftthe only two companies that currently boast 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 pioneer of graphics processing units (GPUs) is trailing the incumbents with a market cap of $2.8 trillion, but looks set to break new ground.

Let’s look at the many growth factors that could send Nvidia stock to new heights.

Are we playing a game?

Nvidia revolutionized gaming a quarter of a century ago when the company released the GPU, which produced realistic visuals in video games. The secret to its 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 vast potential of this breakthrough and set out to adapt this technology to a number 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 story of the tape

Over the past 10 years, Nvidia’s revenue has grown 2,350% (as of this writing), while its net income has grown 9,490%. While it hasn’t all been a straight line, the company’s consistent performance has driven an impressive rise in its share price, which is up 23,110%.

In its fiscal 2025 second quarter (ended July 28), Nvidia reported record revenue of $30 billion, up 122% year-over-year and 15% sequentially. 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. Revenue for the segment rose 154% to $26.3 billion, driven by voracious demand for AI.

There will likely be much more demand ahead. Analysts at Goldman Sachs Research estimates the economic impact of artificial intelligence at $7 trillion by 2030. Additionally, the improved macroeconomic environment could help accelerate adoption, which would be a boon for Nvidia.

The story continues

Not a one trick pony

There’s no doubt that AI is currently Nvidia’s biggest opportunity, but it’s far from the only one.

Let’s not forget that until recently, gaming GPUs were the company’s cash cow, while AI played second fiddle. During the economic downturn, many gamers made do with existing CPUs, waiting for the specter of inflation to subside. As the economic outlook continues to improve and graphics cards reach the end of their useful lives, there’s plenty of pent-up demand that could fuel an upgrade cycle that’s been long overdue, and Nvidia will benefit the most.

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

There is also the data center market, which will be driven by the growing adoption of cloud computing. Many companies are moving their data to the cloud, ditching on-site storage, another trend that favors Nvidia. It controls about 95 percent of the data center GPU market, according to Angelo Zino, senior analyst at CFRA Research.

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

Nvidia’s supremacy and growing market place the company in prime position for another opportunity. Generative AI isn’t the only game in town. The company has a virtual monopoly on the machine learning market, an established branch of AI. The company controls an estimated 95% share of that market, according to New Street Research.

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

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

The Path to $10 Trillion

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

Wall Street is currently forecasting 47% annual revenue growth for Nvidia over the next five years. If the company reaches that watermark, it TO to reach a market cap of $10 trillion as soon as 2029. But don’t take my word for it. Beth Kindig, CEO and Principal Technology Analyst of I/O Fund, has an estimate that is eerily similar:

Given the company’s multiple growth paths and accelerated adoption of artificial intelligence, I think Kindig has hit the nail on the head.

There is a caveat, of course. Given Nvidia’s parabolic growth since the start of last year, any weakness in the company — real or perceived — could crush the stock price, at least temporarily. We recently saw an example when Nvidia lost nearly a quarter of its value in the six weeks between June and July as investors became upset over rumors of a delay in the launch of its next-generation Blackwell platform.

That said, I’d argue that 36 times forward earnings is a reasonable price to pay for a company on the cusp of one of the biggest paradigm shifts in technology in a generation.

Should you invest $1,000 in Nvidia right now?

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Danny Vena 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: long $395 January 2026 Microsoft calls and short $405 January 2026 Microsoft calls. The Motley Fool has a disclosure policy.

Meet the supercharged growth stocks that will hit $10 trillion by 2030, according to 1 Wall Street Analyst was originally published by The Motley Fool