Several major AI companies will go public to reshape the market in the next few years.
Nvidia is a key supplier to every one of those companies.
The stock market could have some major changes between now and 2030 that reshape the entire makeup. Multiple trillion-dollar companies are slated to go public, including Anthropic and OpenAI. There may be several more that go public after these two, each potentially reaching a trillion-dollar valuation, as the fervor in the artificial intelligence (AI) sector is unlike anything investors have seen in decades. We've already seen one blockbuster initial public offering (IPO) with Space Exploration Technologies going public, and with several other ones on deck, the market will shift into a tech-heavy focus. If all three of these companies maintain their valuations, there are likely $6 trillion in new companies going public from 2026 to 2027, with an unknown number languishing before the calendar flips to 2030.
While some investors may prefer a more balanced market, the reality is that the money is in AI right now, which could cause the scales to tip heavily toward tech. There's one company that interconnects them all, and it's the largest company in the world: Nvidia (NASDAQ: NVDA).
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I think Nvidia is the best investment anyone can make right now, and it will be a major beneficiary of the AI shift coming over the next few years.
Image source: Getty Images.
All of these companies need access to a massive amount of computing power to train and run their AI models. While there are several types of computing units available, Nvidia's graphics processing units (GPUs) remain the industry standard against which all products are compared. Nvidia is also releasing its next-generation architecture in the second half of 2026, Vera Rubin. Vera Rubin chips can process inference workloads at a tenth the cost of previous-generation Blackwell chips and train AI at a fourth of the cost.
This will unlock new potential for Nvidia's GPUs and keep it at the top of the AI computing power food chain. All of the companies listed above utilized Nvidia's computing units in one way or another. SpaceX, which owns xAI, the makers of Grok, is going exclusively to Nvidia hardware because CEO Elon Musk believes it's the best product out there.
Nvidia has also clued investors in on what future computing demand looks like, and the projections are stunning. By 2030, Nvidia expects global annual data center capital expenditures to reach $3 trillion to $4 trillion. For reference, they believe the big five AI hyperscalers will spend about $800 billion this year and $1.3 trillion next year. That's monster growth between now and 2030, and Nvidia is slated to cash in on it.
But just how big can Nvidia get?
Next year, Nvidia expects to grow its revenue by about 70%. Wall Street analysts project its revenue total to rise to about $692 billion. So, Nvidia accounts for over half of the big five AI hyperscalers' spending. When others are included, this figure probably rises to about $1.5 trillion in projected global spending 2027 global spending. With that in mind, I don't think it's unreasonable to expect Nvidia's revenue to double from the end of next year through 2030, based on overall market growth projections.
That would result in about $1.4 trillion in revenue by 2030. At a 60% profit margin (Nvidia's trailing-12-month margin is 64%), Nvidia would generate $840 billion in profits. At a 30-times-earnings valuation, that equates to a $25.2 trillion company.
While that may be a rosy projection, that's the reality that Nvidia is telling investors about. Even if Nvidia falls short, I think it could easily become a $20 trillion company by 2030, which would completely reshape the stock market given its sheer size. Time will tell if this pans out, but one thing is for certain: Nvidia is an excellent stock to buy right now.
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Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.