- Bulls predict more Wall Street records will fall
- $5 trillion market cap implies $200 share price
- Analysts consistently under-estimated Nvidia’s growth potential
Uber bulls sees Nvidia (NVDA:NASDAQ) hitting a $5 trillion valuation next year fuelled by an AI (artificial intelligence) rally that has far further to run. So says Louis Navellier, chief investment officer at Navellier & Associates, the analysis firm he founded and runs.
Navellier predicts that Nvidia stock could smash the $200 mark in 2025.
Nvidia has already experienced a meteoric rise, yet Navellier thinks that if the Santa Clara, California company can get its next generation Blackwell chips into production on track in 2025, the stock could break more Wall Street records.
CRUCIAL NEXT GEN CHIP TECH
A key factor in Nvidia’s dominance, according to Navellier, is its substantial investment in next generation generative AI chips. He claims that Nvidia’s $2 billion expenditure renders competitor efforts ‘increasingly futile’ due to Nvidia’s superior technology.
Navellier goes as far as to suggest Nvidia is single-handedly leading the stock market, prompting Bloomberg TV to declare the S&P 500’s ‘Magnificent Seven’ has become ‘the Magnificent One and 499 other stocks.’
Navellier downplays recent news of antitrust investigations into Nvidia, Microsoft (MSFT:NASDAQ), and OpenAI by the Justice Department and Federal Trade Commission. Citing a Wall Street Journal report, Navellier noted that these investigations ‘may ultimately come to nothing’ and will not impede the progress of AI.
WALL STREET RECORDS FALL
Nvidia has already broken Wall Street records. It took Apple (AAPL:NASDAQ) about five years to bridge the $1 trillion to $3 trillion market cap gap, Microsoft about the same. Nvidia did it in barely a year.
So, what would a $5 trillion market cap mean for valuation? Based on Koyfin’s fiscal 2027 (to 31 Jan) consensus data, the stock currently trades on a price to earnings ratio of around 30. Applying a $200 share price to those same forecasts would lift the 2027 PE to about 48.
Crucial to future valuation will be the direction of forecasts, and whether they stay roughly where they are or shift higher over time. The latter seems likely given Nvidia’s run of forecast-beating quarterlies that has seen analysts rethink estimates time and again.
Earnings and revenue estimates for the current year (to 31 Jan 2026) have doubled over the past 12 months, and fiscal 2027 estimates are already 30% higher than they were, implying that Wall Street analysts have been consistent under-egging Nvidia’s growth potential.
