1 Growth Stock Dynamo to Buy Before It Soars Past $8 Trillion, According to 1 Wall Street Analyst

When it rains, it pours. Investors already had plenty to worry about, with rising prices, political dysfunction, and now, the Strait of Hormuz is entering the popular vocabulary. People face this dizzying array of concerns with the stock market caught in the middle. In times like these, it's easy to forget that periods of uncertainty -- while difficult to endure -- generally represent significant opportunities for investors. Taking a deep breath and buying stakes in the best companies you can find tends to yield profitable results, particularly in hindsight.

One such opportunity is Nvidia (NASDAQ: NVDA). The chipmaker is the leading provider of the graphics processing units (GPUs) that speed data through the ether, powering advancements in artificial intelligence (AI). The stock has been stuck in neutral for the past eight months, despite delivering stellar results three times during that period.

One Wall Street analyst argues that the languishing stock price won't last long, with the market poised to soar to $8.7 trillion over the coming year.

Image source: Getty Images.

Show me the money

Just last month, Nvidia reported the latest in a series of blowout financial reports, and the market shrugged. For its fiscal 2026 fourth quarter (ended Jan. 25), the company generated revenue of $68 billion, which jumped 73% year over year and 20% sequentially. This resulted in adjusted earnings per share (EPS) of $1.62, which jumped 82%. The increase in profitability was driven by its gross margin, which expanded to 75.2%, up 170 basis points.

For context, analysts' consensus estimates were for $66.2 billion in revenue and $1.54 in EPS, so Nvidia cleared those hurdles with ease.

On the heels of the company's results and after reading the tea leaves, Tigress Financial analyst Ivan Feinseth reiterated his strong buy rating and raised his 12-month price target on Nvidia stock to $360, which is double the stock's current level. That represents potential upside for investors of 100%.

The analyst believes Wall Street is underestimating Nvidia's potential in 2026. He calculates the chipmaker will deliver revenue of $406 billion and net operating profit of $201 billion over the coming year. By applying a multiple of 30 to its earnings, he concludes Nvidia stock will rise to $360.

I think the analyst is on to something. Management's tendency to underpromise and overdeliver is well documented: Nvidia has exceeded revenue and EPS expectations in eight of the past nine quarters, illustrating the company's inclination toward conservatism.

If Nvidia's stock price hits $360 over the next 12 to 18 months, that would push its market cap to over $8.7 billion.

The numbers are in Nvidia's favor

McKinsey & Company estimates that capital expenditures to support the data center build-out will reach $7 trillion by 2030, with $5.2 billion of that earmarked for AI workloads. Moreover, Nvidia's GPUs are the "single biggest cost driver for an AI data center," accounting for 39% of the total outlay, according to Business Insider. Nvidia has a dominant 92% share of the GPU data center market, according to IoT Analytics. Running the numbers suggests Nvidia could deliver nearly $2 trillion in data center revenue alone over the coming five years.

CEO Jensen Huang thinks that's conservative. At Nvidia's GPU Technology Conference this week, Huang estimated that Nvidia will generate "at least" $1 trillion from the sale of Blackwell and Vera Rubin chips by the end of 2027. "In fact, we are going to be short," Huang said. "I am certain computing demand will be much higher than that." Generating $1 trillion over the coming eight quarters would be a staggering feat, but I wouldn't bet against Nvidia.

Taken together, there's a clear mathematical path for the company to surpass an $8.7 trillion market cap within the next 12 to 18 months. Even if Nvidia doesn't get there, the company's growth trajectory suggests it's only a matter of time. Furthermore, at just 22 times forward sales, Nvidia stock is a bargain.

Danny Vena, CPA has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.