--- title: "Prediction: This Unstoppable Stock Will Be a Founding Member of the $6 Trillion Club by 2027" description: "Nvidia is predicted to join the $6 trillion club by 2027, driven by the surging demand for AI technology and its dominance in the GPU market, controlling 92% of it. The company reported record revenue" type: "news" locale: "en" url: "https://longbridge.com/en/news/253363305.md" published_at: "2025-08-17T23:04:47.000Z" --- # Prediction: This Unstoppable Stock Will Be a Founding Member of the $6 Trillion Club by 2027 > Nvidia is predicted to join the $6 trillion club by 2027, driven by the surging demand for AI technology and its dominance in the GPU market, controlling 92% of it. The company reported record revenue of $44 billion in Q1 2026, with a 73% increase in its data center business. Analysts forecast Nvidia's revenue will grow significantly, with Loop Capital projecting a price target of $250, suggesting a market cap of $6.1 trillion in the next 12 to 18 months. Despite past stock volatility, Nvidia's long-term growth trajectory remains strong. Artificial intelligence (AI) has stolen the limelight over the past few years, and there's plenty of evidence to suggest this is just the beginning. Developers continue to create new applications for the technology, which is being leveraged to produce original content, streamline business processes, and enhance productivity. Despite making headlines for more than two years, it's still early days for the adoption of AI, and the evidence suggests spending continues to ramp up. In fact, the four horsemen of technology -- namely **Microsoft**, **Alphabet**, **Amazon**, and **Meta Platforms** -- are poised to collectively spend more than $400 billion for the capital expenditures required to support their AI ambitions this year, and these outlays show no signs of slowing. With data center spending at the top of the shopping list, **Nvidia** (NVDA -0.85%) is positioned to reap the rewards of much of that spending. The company pioneered the graphics processing units (GPUs) that perform the mathematical calculations required to enable AI, and I predict it will parlay the unrelenting demand for those chips into charter membership in the $6 trillion club. Image source: Getty Images. ## A GPU primer Nvidia pioneered the first GPU back in 1999 to render lifelike images in video games. The groundbreaking development that made that possible was parallel processing, which breaks up massive computing jobs into smaller, more manageable chunks. This enabled the simultaneous processing of a multitude of mathematical computations, making Nvidia's chips a game-changer. This was just the beginning of the journey for the humble GPU, which proved adept at enabling or accelerating other applications, including those in the cloud or data centers, where the majority of AI processing takes place. Nvidia has become the gold standard for data center GPUs, controlling an eye-watering 92% of the market, according to business intelligence firm IoT Analytics. The feverish demand for these specialty chips has driven Nvidia's financial results *and* its stock price into the stratosphere. ## Show me the money In its fiscal 2026 first quarter (ended April 27), Nvidia generated record revenue of $44 billion, which surged 69% year over year and 12% sequentially. This fueled adjusted earnings per share (EPS) that jumped 27% to $0.76. The headliner was the data center business, which includes processors used for cloud computing, data centers, and AI. Revenue for the segment surged 73% to $39 billion, driven by relentless demand for AI. This could be just the beginning. Big Four accounting firm PricewaterhouseCoopers (PwC) estimates the AI market could be worth $15.7 trillion by 2030, with Nvidia being a major beneficiary by supplying the cutting-edge chips that underpin the technology. ## The path to $6 trillion Nvidia currently boasts the world's highest market cap for a publicly traded company, at roughly $4.44 trillion (as of this writing). This means its stock price would need to rise 35% to drive its value to $6 trillion. According to Wall Street, Nvidia is poised to generate revenue of more than $201 billion in fiscal 2026 (which began in January), giving it a forward price-to-sales (P/S) ratio of roughly 22. Assuming its P/S remains constant, Nvidia would need to increase its revenue to roughly $272 billion annually to support a $6 trillion market cap. Wall Street forecasts estimate that Nvidia will grow its revenue by 53% this year and 25% next year. If the company can attain those benchmarks, it *could* reach a $6 trillion market cap as early as 2027. But don't take my word for it. Loop Capital analyst Ananda Baruah has just issued a Street-high price target of $250 on Nvidia stock, suggesting it could reach a market cap of $6.1 trillion over the next 12 to 18 months. The analyst cited supply chain checks and concluded that hyperscale adoption of generative AI and AI factories could generate spending of $2 trillion by 2028, with Nvidia as a major beneficiary. Given the widespread adoption of AI, I believe Baruah's call is prescient. It's important to remember that these gains won't come in a straight line. A review of Nvidia's charts reveals that the stock price has fallen 25% or more from its peak on at least five separate occasions, and in one case, it plunged 66%. On the other hand, it would be difficult to overstate the company's success. Despite the aforementioned volatility, over the past decade, Nvidia's revenue has grown by 3,735%, while its net income has surged 13,911%. Furthermore, the company's relentless innovation and improving financial performance have fueled a blistering increase in its stock price, which has soared 30,870%. Nvidia is currently selling for 31 times next year's earnings, which is certainly a premium. However, given its impressive track record, consistent execution, and the significant opportunity represented by AI, I'd argue it's a small price to pay for such a high-quality company. ### Related Stocks - [NVDA.US - NVIDIA](https://longbridge.com/en/quote/NVDA.US.md) - [NVDL.US - GraniteShares 2x Long NVDA Daily ETF](https://longbridge.com/en/quote/NVDL.US.md) - [07788.HK - XL2CSOPNVDA](https://longbridge.com/en/quote/07788.HK.md) - [07388.HK - XI2CSOPNVDA](https://longbridge.com/en/quote/07388.HK.md) - [NVDY.US - YieldMax NVDA Option Income Strategy ETF](https://longbridge.com/en/quote/NVDY.US.md) - [NVDD.US - Direxion Daily NVDA Bear 1X ETF](https://longbridge.com/en/quote/NVDD.US.md) - [NVDX.US - T-Rex 2X Long NVIDIA Daily Target ETF](https://longbridge.com/en/quote/NVDX.US.md) - [NVDQ.US - T-Rex 2X Inverse NVIDIA Daily Target ETF](https://longbridge.com/en/quote/NVDQ.US.md) - [SOXL.US - Direxion Semicon Bull 3X](https://longbridge.com/en/quote/SOXL.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 机构 “最超配” 闪迪，“最低配” 英伟达 | 据摩根士丹利最新的统计：“机构对美国大型科技股的低配程度是 17 年来最大的” 相比 2025 年 Q4 的标普 500 指数权重，“$NVDA 仍然是机构低配程度最大的大型科技股，其次是苹果、微软、亚马逊和博通，而存储巨头闪迪则是 “最超 | [Link](https://longbridge.com/en/news/276289765.md) | | 黄仁勋预告 “前所未见” 的芯片新品，下一代 Feynman 架构或成焦点 | 黄仁勋预告今年的 GTC 大会上发布” 世界从未见过” 的全新芯片产品，分析认为新品可能涉及 Rubin 系列衍生产品或更具革命性的 Feynman 架构芯片，市场预期 Feynman 架构将针对推理场景进行深度优化。 | [Link](https://longbridge.com/en/news/276310964.md) | | LPDDR 6 时代来临！AI 需求太猛，下一代 DRAM 将比预期更快进入市场 | LPDDR6 性能较前代提升 1.5 倍，最快下半年正式商用，英伟达、三星及高通等巨头正积极布局。目前多数 HPC 半导体设计企业考虑并行搭载 LPDDR5X 及 LPDDR6 IP，特别是在 4 纳米及以下先进制程芯片的设计中，需求出现得 | [Link](https://longbridge.com/en/news/276431575.md) | | 为 AI 交易 “背书”！OpenAI 正敲定新一轮融资：以 8300 亿美元估值募资高达 1000 亿美元 | OpenAI 正以 8300 亿美元估值推进新一轮融资，目标筹集 1000 亿美元。软银拟领投 300 亿美元，亚马逊和英伟达可能各投 500 亿及 300 亿美元，微软拟投数十亿美元。本轮融资是 OpenAI 自去年秋季公司制改革以来的首 | [Link](https://longbridge.com/en/news/276298180.md) | | 学习英伟达刺激芯片销售，AMD 为 “AI 云” 借款做担保 | AMD 为扩大市场份额祭出金融 “狠招”！为初创公司 Crusoe 的 3 亿美元购芯贷款提供担保，承诺在其无客户时 “兜底” 租用芯片。这一复刻英伟达 “租卡云” 路径的策略虽能短期推高销量，但也令 AMD 在 AI 需求放缓时面临更大的 | [Link](https://longbridge.com/en/news/276401504.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.