<div id="readability-page-1">Nvidia (NVDA +1.73%) is the center of gravity for the artificial intelligence revolution. The stock has added 15% year to date, outpacing the 8% return in the S&amp;P 500 (^GSPC +0.84%), and Wall Street analysts still think it's undervalued. The median target price of $267.50 per share implies 24% upside from the current share price of $213. Nvidia shareholders recently got some good news from Wall Street. Here are the important details. <div><img width="880" height="587" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NjkyNDQvbnZkYS5wbmcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NjkyNDQvbnZkYS5wbmcmdz0zODQw"/>Image source: Getty Images. </div> <h2>Nvidia continued to dominate the AI accelerator market in 2025</h2> Nvidia graphics processing units (GPUs) are the industry standard in accelerating artificial intelligence (AI) workloads. Nvidia systems consistently outperform alternative infrastructure solutions at the MLPerf benchmarks, objective tests that measure performance across AI training and inference tasks. For years, Nvidia critics have warned that ASICs (application-specific integrated circuits) are a big threat to the company's dominance in AI accelerators. Indeed, several customers have designed and deployed ASICs in their data centers, including Alphabet, Amazon, Microsoft, and Meta Platforms. And adoption will almost certainly continue to increase in the years ahead. However, the idea that custom AI accelerators will materially displace Nvidia GPUs in the near future is absurd. Custom accelerators require custom software development tools that very few companies have the talent and resources to create. And even those with the technical expertise are still at a disadvantage because Nvidia started building its software ecosystem in 2006. In a recent note, Morgan Stanley analyst Joseph Moore wrote, &#34;We consistently hear that customers see a competitive product as potentially lower cost, put it into use, and come back to Nvidia.&#34; As a result, Nvidia captured 86% market share in AI accelerator sales in 2025, unchanged from its market share in 2024, per Bloomberg. So what? Despite the enthusiasm surrounding custom silicon companies like Broadcom, ASICs did not event dent Nvidia's market share last year. Of course, custom AI chips will almost certainly gain share in the years ahead, especially because demand for compute outstrips supply. But Nvidia GPUs will remain the industry standard for the foreseeable future. <h2>AI infrastructure spending continues to outpace Wall Street's expectations</h2> Wall Street analysts have consistently underestimate how much hyperscalers will invest on AI infrastructure. Initially, the consensus estimate initially said capital expenditures (capex) among the top five hyperscalers (Alphabet, Amazon, Microsoft, Meta, and Oracle) would increase 19% in 2026, but it now says capex will increase more than 60% this year. Morgan Stanely analysts are particularly bullish. Their latest forecast shows capex among the five largest hyperscalers increasing nearly 80% to $805 billion in 2026, followed by 39% growth to $1.1 trillion in 2027. That bodes well for Nvidia, not only because its GPUs are the industry standard in AI accelerators, but also because it leads the market for AI networking. <h2>Certain Wall Street experts say Nvidia is headed to $10 trillion or even $20 trillion</h2> Brad Gerstner, founder and CEO of Altimeter Capital, says Nvidia is &#34;terribly undervalued&#34; because the market is underestimating demand for AI infrastructure. He recently told CNBC, &#34;I think Nvidia will be the first $10 trillion company,&#34; citing its ability to design more cost efficient systems than competitors, including those that use custom chips. Beth Kindig, lead tech analyst at the I/O Fund, says Nvidia will be a $20 trillion company by the end of the decade. &#34;The key reason that Nvidia can reach a $20 trillion market cap by 2030 is because the company is moving its GPU generation cadence to a rapid 12-18 month cycle, compared to custom silicon, which is typically on a 3-5 year cycle,&#34; she wrote. Here's the bottom line: Nvidia's market value is currently hovering around $5 trillion. So, Brad Gerstner's forecast implies about 100% upside, and Beth Kindig's forecast implies about 300% upside. That is great news for shareholders.</div>

The global semiconductor sector experienced a strong surge, with the chip index jumping over 4%, outperforming the broader market and hitting a new all-time high! AMD, the computing power giant, saw its data center business grow by 57% in the first quarter and its second-quarter guidance significantly exceeded expectations, leading to a post-market surge of over 10%. Intel's stock price rose nearly 13% in a single day, boosted by rumors of Apple's contract manufacturing talks. Micron Technology and SanDisk, two major memory manufacturers, both hit new all-time highs overnight, driven by strong AI demand and expectations of locked-in long-term contracts. The "supercycle" in the semiconductor industry chain has not only not peaked, but is accelerating in a deeper and broader dimension.

The global semiconductor sector experienced a strong surge, with the chip index jumping over 4%, outperforming the broader market and hitting a new all-time high! AMD, the computing power giant, saw its data center business grow by 57% in the first quarter and its second-quarter guidance significantly exceeded expectations, leading to a post-market surge of over 10%. Intel's stock price rose nearly 13% in a single day, boosted by rumors of Apple's contract manufacturing talks. Micron Technology and SanDisk, two major memory manufacturers, both hit new all-time highs overnight, driven by strong AI demand and expectations of locked-in long-term contracts. The "supercycle" in the semiconductor industry chain has not only not peaked, but is accelerating in a deeper and broader dimension.

Storage and chip sectors rose across the board, and the super cycle continues!

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Nvidia (NVDA) is leading the AI revolution, with a 15% stock increase this year, outperforming the S&P 500. Analysts believe the stock is undervalued, with a median target price of $267.50, indicating a 24% upside. Nvidia holds 86% market share in AI accelerators, despite competition from custom chips. Wall Street forecasts significant growth in AI infrastructure spending, with estimates for hyperscalers' capex increasing by 80% to $805 billion by 2026. Experts predict Nvidia could become a $10 trillion or even $20 trillion company, suggesting substantial upside for shareholders.

- Nvidia remains a dominant force in the artificial intelligence sector, holding an 86% market share in AI accelerator sales as of 2025.  
- Analysts predict significant increases in capital expenditures among major hyperscalers, with estimates rising from 19% to over 60%, which supports Nvidia's growth.  
- Experts forecast Nvidia's market value could reach between $10 trillion and $20 trillion by 2030, indicating potential gains for shareholders.

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Nvidia Stock Investors Just Got Great News From Wall Street Experts (Hint: It Could Be a $20 Trillion Company)