Nvidia’s Ambitious $6 Trillion Vision: An Analyst’s Bold Insight

Nvidia has magnificently reclaimed its title as the world’s most valuable company, boasting a staggering market cap of $3.77 trillion.

But according to analysts at Loop Capital, this tech titan is just getting started on its remarkable journey, with the potential to soar to an astonishing $6 trillion valuation. This unprecedented growth is fueled by soaring demand from hyperscale data centers, explosive advancements in AI infrastructure, and its commanding presence in the computing market.

After witnessing shares surge to a remarkable $154.31 on Wednesday and rise again to $155 on Thursday, Nvidia’s market value has surged to $3.77 trillion. Analyst Ananda Baruah believes the sky is the limit, projecting the company could achieve a breathtaking $6 trillion valuation.

As Loop Capital’s managing director, Baruah has set Wall Street’s most ambitious price target for Nvidia at $250 per share, indicating a spectacular 127% upside from current levels. This projection suggests that Nvidia could nearly double its value again while still having room for further growth. 

“The math just works,” Baruah insists, asserting that Nvidia is entering what he terms a “Golden Wave” of generative AI adoption. Central to this compelling forecast is the anticipated surge in AI infrastructure spending. 

Tech giants like Amazon and Microsoft, along with other hyperscale leaders, are expected to dramatically ramp up their investments in AI data centers, particularly in non-CPU computing sectors, such as GPUs and AI accelerators, where Nvidia reigns supreme.

Loop Capital estimates that hyperscalers will escalate their infrastructure investments in non-CPU computing from a mere 15% today to an impressive 50% to 60% by 2028. This monumental shift could catapult global spending on AI compute to an astounding $2 trillion within just three years.

This explosion in spending is largely driven by the escalating complexity of AI models. Next-generation reasoning models reportedly demand up to 150 times more computing power than traditional large language models, thereby underscoring the critical importance of Nvidia’s AI servers.

Furthermore, Nvidia is placing its bets on the development of AI factories, vertically integrated data centers specifically designed for the large-scale training and deployment of AI models. The company sees a forthcoming demand of “tens of gigawatts” over the next 24 to 36 months.

According to CEO Jensen Huang, each gigawatt of demand represents a staggering $40 to $50 billion in revenue for Nvidia, potentially translating to nearly $900 billion in projected sales, almost eight times its current data center revenue.

Loop Capital forecasts Nvidia’s data center revenue will soar from $115 billion to $367 billion an extraordinary more than tripling in just three years. Baruah’s optimism also springs from Nvidia’s near-monopoly on essential AI computing hardware. 

He characterizes the company as “essentially a monopoly for critical technology,” bestowing it with substantial pricing power and opportunities to expand its profit margins significantly. Despite facing competitive challenges from rivals such as AMD and Intel, as well as the emergence of China’s DeepSeek AI, Nvidia has adeptly navigated these obstacles. 

The company has even managed to sidestep U.S. export restrictions and tariff issues with minimal long-term repercussions, showcasing the resilience and robustness of its business model.

Nvidia’s stock price has soared by over 180% in the past year. In light of its recent ascendance, it has eclipsed both Microsoft and Apple to reclaim its throne atop the global market capitalization rankings. 

While some investors remain cautious about potential overheating, Baruah’s analysis serves as a powerful reminder of the buoyant sentiment surrounding the AI megatrend. “We’re entering the next ‘Golden Wave’ of generative AI adoption,” he penned. 

“Nvidia stands at the forefront of a significant demand surge.” If Baruah’s bold predictions come to fruition, Nvidia could redefine the upper echelons of technology valuations. Besides, it has the ability to establish itself not just as a leader in AI but as a formidable financial colossus within the elite trillion-dollar club.