Nvidia (NVDA), the world’s largest company, has made an astonishing ascent to its current position and is far from done growing. The AI arms race has catapulted Nvidia as a primary beneficiary, thanks to its GPUs becoming the standard computing unit for many AI companies. With data center growth driving success, investors can expect strong upside over the next three years.
Nvidia specializes in graphics processing units (GPUs) that excel at arduous workloads. Originally designed for gaming graphics, they have expanded into various fields like engineering simulations, drug discovery, and cryptocurrency mining, ultimately becoming a crucial component for AI workloads. The company’s success stems from its primary role as a recipient of the massive AI investment.
A record year in data centers is expected in 2025, with next year potentially outperforming that. Meta Platforms’ projection of $66 billion to $72 billion in capital expenditures for 2026 indicates significant growth, which could benefit companies like Nvidia. Data center spending is estimated to reach $400 billion globally by 2028.
Nvidia’s revenue would skyrocket if it captures 25% of the forecasted $1 trillion data center spend, reaching $250 billion alone. However, its non-data center sources contribute a significant portion to its overall revenue. With conservative estimates and a 10% growth rate for non-data center revenue, Nvidia’s projected revenue would increase to $273 billion by 2028.
While some may find Nvidia’s current valuation expensive, a potential decline to 40 times earnings could lower the stock price to around $250 per share. This growth scenario would make Nvidia a market-beating stock, supporting its status as a top investment opportunity today.
Source: https://www.fool.com/investing/2025/08/03/prediction-this-will-be-nvidias-stock-price-3-year