TLDR:
- Nvidia stock is up 190% YTD and 2,830% over 5 years, becoming the world’s second-largest company by market cap
- AI infrastructure demand remains strong with major tech companies significantly increasing capital expenditure
- Nvidia maintains 80%+ market share in AI chips, supported by its CUDA software ecosystem
- BofA analyst predicts 40% more upside, citing $200B free cash flow potential over next 2 years
- Company expected to report Q4 earnings showing 85% YoY EPS growth and 80.69% revenue growth
Nvidia, the semiconductor giant that has become synonymous with artificial intelligence computing, continues to demonstrate remarkable market performance and growth potential despite its already substantial gains.
The company’s stock has surged approximately 190% year-to-date, pushing its market capitalization above $3 trillion and securing its position as the second-largest company globally by market value.
The company’s dominance in the AI chip market remains unchallenged, with a market share exceeding 80%. This leadership position is reinforced by its proprietary CUDA software platform, which has become the industry standard for GPU programming and creates a significant barrier to entry for competitors.

Recent data from major technology companies suggests that AI infrastructure demand shows no signs of slowing. Microsoft’s finance leases for AI data centers have more than tripled over the past year, reaching $108.4 billion.
Similarly, both Alphabet and Meta Platforms have indicated that their primary concern isn’t overspending on AI infrastructure but rather potentially underinvesting.
The company’s latest chip architecture, Blackwell, has just begun shipping to customers. Nvidia has accelerated its development cycle from two years to one year, with plans to introduce the next-generation Rubin architecture in 2026. This faster iteration cycle helps maintain its technological edge and pricing power in the market.
Bank of America analyst Vivek Arya has recently expressed optimism about Nvidia’s prospects, suggesting the stock remains undervalued despite its significant gains. Arya projects the company will generate approximately $200 billion in free cash flow over the next two years.
Financial metrics support this positive outlook. The company trades at a forward price-to-earnings ratio of about 35 based on 2025 estimates, with a price/earnings-to-growth (PEG) ratio just above 0.9, suggesting potential undervaluation despite the stock’s strong performance.
Looking ahead to the company’s upcoming earnings report on November 20, 2024, analysts expect earnings per share of $0.74, representing an 85% increase from the previous year. Revenue projections indicate expected sales of $32.74 billion, marking an 80.69% year-over-year increase.
For the full fiscal year, consensus estimates project earnings of $2.82 per share and revenue of $124.66 billion, representing growth of 116.92% and 104.63% respectively compared to the previous year.
The increasing sophistication of AI models continues to drive demand for more powerful computing capabilities. Alphabet has indicated that its Llama 4 language model requires up to 10 times more computing power than its predecessor, while xAI’s Grok 3 needed five times as many GPUs as Grok 2 for training.
Oracle’s management has indicated they see no end to AI infrastructure spending over the next five to ten years, suggesting sustained long-term demand for Nvidia’s products.
Nvidia has evolved beyond being merely a chip manufacturer, now positioning itself as a complete system integrator. The company provides comprehensive solutions including computing, networking, optical resources, and memory components.
Among major competitors, AMD’s stock has gained only 5% year-to-date, while Intel continues to face challenges, with its shares declining 55% this year.
Despite its current size, historical precedents suggest Nvidia could still have significant growth potential. Apple, for example, has grown its market cap by 7x over the past decade despite already being the world’s largest company.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support