<div id="readability-page-1">Shares of Nvidia (NVDA 0.75%) are flying once again following a difficult start to the year. The semiconductor giant's stock jumped 42% in the past three months, easily crushing the 15% gains clocked by the S&amp;P 500 index during this period. So, anyone who bought Nvidia stock while it was sliding earlier in 2025 must be sitting on nice gains right now. However, if you are one of those who missed out on Nvidia's impressive rally, you can still consider buying it right now, as there is a good chance that it could double in the next three years. Let's look at the reasons why. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjQ0MTkvYWJzdHJhY3RfYWlfYmxvY2tzLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="411" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjQ0MTkvYWJzdHJhY3RfYWlfYmxvY2tzLmpwZyZ3PTcwMA"/>Image source: Getty Images. </div> <h2>Nvidia's addressable market is getting bigger</h2> Investment bank Citi has just raised its price target on Nvidia to $190 per share, citing Nvidia's terrific opportunity in sovereign artificial intelligence (AI) infrastructure (i.e., government-related AI). Citi analysts said that the demand for sovereign AI infrastructure is already contributing &#34;billions of dollars&#34; in revenue for Nvidia in 2025. Importantly, Citi analysts say this business segment is expected to ramp up further as the chip giant is involved in nearly every deal for building sovereign AI infrastructure. Nvidia struck agreements with several European nations, including the U.K., France, Italy, and Germany, to deploy its Blackwell AI graphics processing units (GPUs) to help them create an AI ecosystem so that they can &#34;strengthen digital sovereignty, support economic growth and position the continent as a leader in the AI industrial revolution,&#34; according to a release from Nvidia. On the other hand, Nvidia's sovereign business is also gaining traction in the Middle East. From Saudi Arabia to Qatar to the U.A.E., the demand for Nvidia's AI accelerators is booming in these markets. In fact, Nvidia points out that it is helping in the rollout of sovereign AI infrastructure across five continents, including South America, Asia, and Africa. Not surprisingly, Bank of America estimates that the sovereign AI infrastructure market could generate annual revenue of $50 billion in the long run. Nvidia's relationships with countries across the globe suggest that it is well placed to corner a nice chunk of this sizable opportunity. As such, it is easy to see why Citi is forecasting Nvidia's data center revenue to increase by 5% in fiscal 2027, followed by an 11% jump in fiscal 2028. Sales of data center networking chips, on the other hand, are forecast to increase by 12% in the next fiscal year and 27% in the one after. However, don't be surprised to see this business growing at a faster pace. After all, Citi estimates a total addressable market (TAM) worth $563 billion for AI compute chips by 2028, with another $119 billion coming from AI networking chips. Nvidia's data center revenue stood at $115 billion in fiscal 2025 (which ended in February this year), growing by an impressive 142% from the prior year. Given that Nvidia is the dominant player in the data center compute market and is gaining traction in networking chips as well, it won't be surprising to see its data center revenue exceeding analysts' expectations going forward. <h2>Solid data center growth could help the stock double</h2> Nvidia controlled an estimated 92% of the AI data center GPU market last year. Even if its market share drops to 50% in the next three years, the company's revenue from sales of AI chips could hit $280 billion (based on the $563 billion end-market opportunity pointed out above). That would be more than double the company's data center revenue in fiscal 2025. Nvidia's revenue from the non-data center business stood at $15 billion last year. The good part is that the company sees healthy growth in markets such as gaming, which opens the possibility of an uptick in the company's non-data center business as well. But even if we assume that Nvidia's revenue from the non-data center business grows to $20 billion after three years and hits $280 billion in revenue from selling data center chips, its top line could jump to $300 billion. Nvidia stock trades at just over 26 times sales. It can maintain this premium multiple after three years, considering that its top line could more than double from last year's reading of $130.5 billion, growing at an annual rate of 32%. Another reason why Nvidia can continue to sport a premium valuation is that it is unlikely to lose a lot of share in the AI chip market because of its control over the supply chain. A sales multiple of 26 and a projected top line of $300 billion could take Nvidia's market cap to $7.8 trillion, which is just about double its current market cap. Investors, therefore, can still consider buying this AI stock hand over fist as it seems capable of soaring higher. </div>

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Nvidia's stock has surged 42% in the last three months, outperforming the S&P 500. Analysts from Citi predict the stock could double in the next three years, driven by growth in sovereign AI infrastructure, which is expected to generate significant revenue. Nvidia's dominance in the AI data center GPU market, projected revenue growth, and strong relationships with global governments position it well for future gains. With a potential market cap of $7.8 trillion, investors are encouraged to consider buying Nvidia stock now.

- Nvidia's stock has surged 42% in the past three months, significantly outperforming the S&P 500's 15% gain.  
- Investment bank Citi has raised its price target for Nvidia to $190, citing strong demand for sovereign AI infrastructure, which is expected to generate billions in revenue.  
- With a projected total addressable market of $563 billion for AI compute chips by 2028, Nvidia's revenue could exceed $300 billion, potentially doubling its market cap to $7.8 trillion.

Nvidia Stock May Double in the Next 3 Years. Here's Why.