Where Will Nvidia Stock Be in 5 Years?

The past five years have been phenomenal for Nvidia (NASDAQ:NVDA) investors. An investment of $1,000 made in Nvidia's shares five years ago is now worth almost $10,000.

The multibagger gains in Nvidia stock over this period have been fueled by artificial intelligence (AI)-driven demand for the company's chips. Investors may now be wondering how much more upside they can expect from Nvidia over the next five years.

After all, it is now the largest company in the world with a market cap of just over $5 trillion, as of this writing. The good news for Nvidia investors is that the company still has a massive addressable market that should allow it to sustain its outstanding growth until the end of the decade.

We will take a closer look at Nvidia's potential catalysts in this article and gauge the gains the stock could deliver by the end of the decade.

Image source: The Motley Fool.

Nvidia is more than just an AI GPU company

The data center business is Nvidia's largest source of revenue. The company's data center segment generated $75.2 billion in revenue in the first quarter of fiscal 2027, up 92% from the year-ago period. It also accounted for 92% of the company's top line.

However, what's worth noting is that Nvidia's data center chip business isn't just limited to its graphics processing units (GPUs), which have been the cornerstone of its growth over the years. It is also partnering with companies that design custom AI processors and optical components.

For instance, Nvidia entered into a partnership with custom AI and networking chip designer Marvell Technology earlier this year, investing $2 billion in the latter. The partnership will give Nvidia's customers the choice to use Marvell's custom AI processors when developing their infrastructure. Also, companies looking to develop custom AI chips with Marvell will have the opportunity to use Nvidia's high-bandwidth NVLink Fusion platform to help them integrate the custom processors into rack-scale server systems.

Such a partnership will allow Nvidia to cut its teeth in the custom AI processor market, where Marvell is a key player. Bloomberg estimates that the market for custom AI processors could be worth $118 billion by 2033. On the other hand, Nvidia has also set its sights on the co-packaged optics market, which has been booming due to the growing need for fast connectivity in AI data centers.

It entered into a partnership with optical interconnect technology provider Ayar Labs in June to strengthen the NVLink Fusion platform. Nvidia aims to help hyperscalers connect their AI infrastructure with optical networks, and this is another fast-growing area that could unlock a huge addressable market for the company.

Goldman Sachs predicts that the optical networking market could grow by a whopping 9x between 2026 and 2028, generating $154 billion in revenue after a couple of years. So, Nvidia is pulling the right strings to unlock new growth opportunities in AI. One such key opportunity is the one in server central processing units (CPUs), a market that has been dominated by Intel and AMD so far.

Nvidia is now selling its Vera server CPU as a stand-alone product, and it expects to generate $20 billion in revenue from its sales this year. Even better, the company notes that it has a $200 billion addressable opportunity in the server CPU market. In all, Nvidia is expanding into additional areas that should help it sustain its healthy growth rate in the future.

Here's how much upside investors can expect until 2030

Analysts predict that Nvidia's healthy growth rate will continue despite its massive revenue base, which isn't surprising given the additional opportunities the company can capitalize on and the enormous size of the AI accelerator market, where it is the dominant player.

NVDA Revenue Estimates for Current Fiscal Year data by YCharts

The catalysts discussed in this article suggest that Nvidia can sustain its terrific growth beyond fiscal 2029 (which will end in January 2029). Assuming Nvidia's revenue grows at even 15% in fiscal 2030 and fiscal 2031 (which will end in January 2031 and coincide with the majority of calendar 2030), its top line could reach $918 billion after five years (using fiscal 2029's projected revenue of $694.4 billion as the base).

If Nvidia trades at even 12 times sales at that time, half of its current price-to-sales ratio, its market cap could reach almost $11 trillion by 2030. That's just over double Nvidia's current market cap, which means that investors can still consider buying this AI stock for healthy long-term gains.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Goldman Sachs Group, Intel, Marvell Technology, and Nvidia. The Motley Fool has a disclosure policy.