Where will Nvidia stock be in 5 years?

The last five years have been incredible for Nvidia (NVDA -4.08%) investors as the semiconductor specialist’s stock has taken off in stunning fashion thanks to tremendous growth in its revenue and earnings and some solid catalysts in the form of video games and artificial intelligence (AI).

An investment of just $100 in Nvidia stock five years ago is now worth $2,850. The stock’s gains of 2,750% during this period have crushed S&P 500 the index has increased by 93% in the last five years. But now, Nvidia is the third largest company in the world with a market capitalization of just over $2.9 trillion. Expecting the stock to rise another 25 to 30 times from current levels over the next five years doesn’t seem logical, since its market cap would then be worth $80 trillion.

The global economy, by comparison, was worth about $105 trillion last year. However, it’s worth noting that Nvidia still has solid growth drivers in the bag that could allow it to sustain healthy levels of growth over the next five years.

In this article, we’ll take a closer look at those catalysts and see how much this semiconductor stock could deliver over the next five years.

Nvidia’s latest results show that its AI-fueled growth is here to stay

Nvidia released its fiscal second quarter 2025 results (for the three months ended July 28) on August 28. Its numbers came in better than expected, with revenue up 122% year-over-year to $30 billion and non-GAAP earnings per share up an impressive 152% year-over-year past, up to $0.68 per share.

Wall Street analysts would have settled for earnings of $0.65 per share on company revenue of $28.7 billion. That’s not where the good news ended, as Nvidia expects its fiscal third-quarter revenue to come in at $32.5 billion, ahead of the consensus estimate of $31.7 billion. This would translate into a year-on-year increase of 80%.

However, the stock fell despite reporting such phenomenal growth and delivering stronger than expected guidance. However, this slight pullback is an opportunity for investors to buy the stock, as a closer look at its latest quarterly results indicates that it is witnessing solid growth across its businesses.

The data center segment, which grew 154 percent year-over-year to record $26.3 billion in revenue, is benefiting greatly from strong demand for Nvidia’s graphics processing units (GPUs), which are deployed for train and deploy AI models. . What’s worth noting here is that customers have continued to buy GPUs based on Nvidia’s Hopper architecture, even as the company is set to ramp up production of its next-generation Blackwell chips next quarter.

As CFO Colette Kress pointed out on the most recent earnings conference call:

The Blackwell production ramp is scheduled to begin in the fourth quarter and continue into fiscal ’26. In Q4, we expect to get several billion dollars in Blackwell revenue. Bunker deliveries will increase in the second half of fiscal 2025.

Bunker supply and availability improved. Demand for Blackwell rigs far exceeds supply and we expect this to continue next year.

More importantly, Nvidia believes that next-generation AI models will likely require 10 to 20 times more computing power, suggesting that demand for its data center GPUs could continue to grow in the long term. According to one estimate, the AI ​​chip market could generate annual revenue of $311 billion in 2029, compared to this year’s estimate of $123 billion.

Nvidia generated nearly $49 billion in data center revenue in the first half of its current fiscal year, indicating that it could end fiscal 2025 (which falls 11 months into calendar 2024) with revenue of nearly 100 of billions of dollars in this segment. Based on the $123 billion estimate of the total AI chip market, Nvidia’s market share could reach around 80% by the end of this year.

Even if Nvidia’s AI chip share declines over the next five years to as much as 70% due to emerging competition, it could still generate $217 billion in annual data center revenue five years from now (based on the size of 311 billion dollars of the total market). In simpler words, Nvidia’s data center revenue can double over the next five years.

Adding in the fact that the company’s other businesses are also seeing healthy growth, it won’t be surprising to see Nvidia become a bigger company in the next five years. For example, the company’s revenue from its personal computer (PC) gaming and AI segment grew 18% year over year to $2.6 billion.

Gaming has been around for Nvidia over the years, but now contributes less than 10% to its top line. However, investors would do well to look at the bigger picture, as demand for AI PCs will increase over the next five years, paving the way for Nvidia to generate substantial revenue from the gaming and PC segment.

Meanwhile, the company’s professional viewing revenue rose 45% year-over-year to $427 million, driven by growing demand for the company’s digital twin solutions. As Kress noted on the most recent earnings call:

The world’s largest electronics manufacturer, Foxconn, uses NVIDIA Omniverse to power the digital twins of the physical factories that make NVIDIA Blackwell systems. And several large global enterprises, including Mercedes-Benz, have signed multi-year contracts for NVIDIA Omniverse Cloud to build industrial digital twin factories.

Again, this is another profitable growth opportunity for Nvidia, as the digital twin market could generate $131 billion in revenue in 2029, compared to $26 billion this year, according to Mordor Intelligence. All in all, there are several reasons why Nvidia could prove to be a solid investment over the next five years.

How much can investors expect?

Nvidia’s healthy outlook is why analysts have raised their revenue growth expectations for the company’s current fiscal year and beyond.

NVDA revenue estimates for current fiscal year data by YCharts.

Similarly, its economic growth expectations have also seen an increase.

NVDA EPS estimates for current fiscal year data by YCharts.

On the bright side, Nvidia is expected to post 52% annual earnings growth over the next five years. Based on the company’s fiscal 2025 earnings per share estimate of $2.84, the bottom line could rise to $23 per share five years from now. The stock currently has a forward earnings multiple of 45. However, even though it trades at a discount of 29 times forward earnings after five years, according to Nasdaq-100 Multiple of the index’s forward earnings (using the index as a proxy for tech stocks), its share price could hit $667.

That would be a jump of more than 5x from current levels, suggesting that this AI stock could continue to make investors rich over the next five years.