Prediction: This Red-Hot Opportunity Could Add Nearly $350 Billion to Nvidia's Market Cap

Nvidia's (NASDAQ: NVDA) data center business has been the company's primary growth driver in the past three years, catapulting it to a market cap of $4.46 trillion as of this writing. This is not surprising, as Nvidia's data center revenue has simply taken off thanks to the booming demand for its graphics processing units (GPUs) that train AI models and help run inference applications.

This explains why Nvidia's data center revenue has shot up from $15 billion in fiscal 2023 (which ended in January 2023) to an estimated $192 billion in the ongoing fiscal year 2026 (which will end next month). Investors can expect Nvidia's data center revenue to grow by a big margin in the coming years, thanks to AI infrastructure investments.

However, there's another potential catalyst that investors may be missing. This particular growth driver could add an impressive $350 billion to Nvidia's market cap in the long run. In fact, this business was the company's bread and butter for a long time before being overshadowed by the data center segment.

Let's take a closer look at this opportunity and check why it has the potential to give Nvidia stock a solid boost.

Image source: Nvidia.

Nvidia is quietly clocking impressive growth in this market

Gaming was Nvidia's biggest source of revenue just four years ago. However, it accounted for just 7.5% of the company's top line in the third quarter of fiscal 2026 (which ended on Oct. 26). Nvidia's gaming segment contributed just under $15 billion to the company's top line in the past four quarters. The company's overall trailing-12-month (TTM) revenue stands at $187 billion.

The data center business now does the heavy lifting for Nvidia. Investors, however, shouldn't discount the potential that the gaming segment offers. After all, Nvidia holds a monopoly-like position in the market for discrete GPUs. Market research company Jon Peddie Research points out that its share of this space was 94% in 2025's Q2.

This terrific market share is the reason why Nvidia's gaming and AI personal computer (PC) business has been growing at a brisk pace. Its gaming revenue increased by 30% year over year in the previous quarter. The company can sustain such momentum in the long run as well. That's because the gaming GPU market could clock an annual growth rate of almost 39% through 2034, according to a third-party research report.

The market size could reach $145 billion by the end of the forecast period. This, however, isn't the only opportunity for Nvidia's discrete PC GPUs. The demand for AI PCs is expected to grow at an annual rate of 29% through 2033. These PCs require discrete GPUs to process AI workloads locally, expanding Nvidia's addressable market in the process. So, Nvidia's addressable opportunity in gaming and AI PCs could be much larger than the $145 billion third-party estimate.

As a result, Nvidia can sustain solid growth levels in this business in the long run, which could give its market cap a nice boost.

Gaming and AI PCs can give the stock a shot in the arm

Nvidia management pointed out three years ago that it sees a $100 billion addressable market in gaming. As pointed out above, that opportunity is now much bigger, driven by catalysts such as AI. That's why I will assume that Nvidia's 30% growth rate in the gaming and AI PC business, which it reported last quarter, will be sustainable in the long run.

Assuming it can maintain this 30% growth rate for the next five years, Nvidia's gaming and AI PC revenue could jump to $56 billion (based on the $15 billion trailing-12-month revenue of this segment). Multiplying that by the U.S. technology sector's average price-to-sales (P/S) ratio of 8.4 suggests that the gaming and AI PC business' worth could be $468 billion.

Applying the same multiple to the segment's TTM revenue of $15 billion suggests that the gaming and AI PC business is now valued at $126 billion. So, the potential growth opportunity in gaming and AI PCs could add almost $350 billion to Nvidia's market cap over the next five years, giving investors another solid reason to buy this AI stock.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.