The US stock market got off to a horrendous start to the week, with shares plummeting across the board Monday. However, there are still high hopes that the tech sector could bounce back in a big way before the year is through. One that could benefit from that is Nvidia (NVDA), which Wall Street analysts have pegged as the first $20 trillion company in world history.
The AI chipmaker has been one of the biggest winners over the last several years. In 2024, it saw its value increase by more than 170%. Although that has taken a step back this year, it still features high expectations from investors and experts alike. Now, all eyes are on if it can live up to these lofty expectations
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Nvidia (NVDA) to Be the World’s First $20 Trillion Company? Wall Street Thinks So
When the AI revolution first started taking shape, Nvidia was widely viewed as the key beneficiary. It developed the chips that made a lot of language models run. Therefore, any company that sought to make headway in the space relied on the company’s product to get ahead.
However, that did not free it from danger entering this year. With geopolitical concerns and a sell-off taking place, the stock dropped more than 27%. Yet, that hasn’t deterred analysts who believe in the company, as Nvidia (NVDA) has been tabbed by Wall Street experts as the most likely first $20 trillion company in world history.
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According to a recent report, analysts are projecting revenue growth of 20% annually for Nvidia. Specifically, this is expected to persist over the next five years, which would project the AI chipmaker to reach the $20 trillion threshold by 2038 at the earliest. Although the numbers add up, everything would have to go right for that to come to fruition.
However, some believe it could happen. Among them is Phil Panaro, the CEO of Boston Consulting Group. “I believe Nvidia will hit $800 by 2030,” he said. If that were to happen, the company would reach a market cap of just over $19.5 trillion in the next five years. That would see the company reach the threshold much faster than projections foresee.
Panaro justified the opinion with two key factors. First, AI adoption is sitting at less than 1%, which will jump if expectations match. Secondly, Panaro expects businesses to spend around $10 trillion on businesses that could propel NVidia. Specifically, increasing its data center revenue from $1 trillion to $9 trillion.
