Over the past few years, the most recognizable face of the AI boom has been Nvidia which is up more than 750% in less than three years. As of the month of July 2025, it has earned a market cap of 4 trillion dollars and its stock value is about $171 dollars in value. According to Coatue Management, a $2 billion hedge fund run by billionaire Philippe Laffont, Nvidia may have at least another 60% upside in the next five years. This implies that it will grow to have a market cap of 5.6 trillion dollars as of the year 2030.
The success of Nvidia is linked directly to the popularity of AI. An artificial intelligence boom was triggered after the launch of ChatGPT by OpenAI late in 2022. One of the greatest beneficiaries of this trend has been Nvidia, a company that manufactures high performance chips used in running AI systems. It has evolved out of the gaming chips manufacturer to become a vital component supplier in the AI system.
Nevertheless, questions are persisting. Is this kind of fast growth sustainable by Nvidia? Or is it close to hitting a ceiling?
Nvidia is exposed to two significant risks now. The first is its exposure to China. Due to increasing trade tensions and new tariffs, it is becoming difficult for U.S. tech firms to operate there. In case of further tightening of export controls, Nvidia may lose some of its sales in China.
The second threat is competition. Such giant corporations as Amazon, Microsoft, and Google are betting on personally developed AI chips. Other chipmakers, such as AMD, are coming on board, too. This might start cannibalizing the market shares of Nvidia, particularly in the data centers.
But these risks are notwithstanding as many think that the company will still do fine in the long run. Nvidia is developing new partnerships in other regions in the Middle East as well, even though China is still considered essential. Also, despite the fact that it might lose one customer to large tech companies, they can be replaced by new ones such as Oracle and xAI, created by Elon Musk.
The long-term tendencies also are in favor of Nvidia. Nvidia will directly benefit from the Project Stargate just announced a $500 billion investment in a massive push in AI infrastructure by Oracle, OpenAI, and SoftBank. McKinsey predicts that worldwide expenditure on AI infrastructure will reach an amount of 6.7 trillion dollars by the year 2030. Suppliers of the chips such as Nvidia will be most expected to benefit from that upsurge.
The price of the company also does not look as overheated as it was in some hype cycles in the past. The price-earnings (P/E) ratio is currently pegged at about 34.2 which is above its average over the past three years. This implies that the stock is not overvalued despite its huge rise.
Nvidia has rather bullish forecasts. Depending on the predictive model the price is projected to be between $107 and $522 dollars by 2025. It is anticipated that by 2026, the stock will be bought and sold at up to $790 dollars. Even further, the predictions in the long run indicate the prices will rise to thousands by 2029 and 2030.
Though the figures are not real and based on assumptions, they still indicate firm confidence in the future of Nvidia. Meanwhile, difficulties will persist. Nvidia will have to be a step ahead of competitors and political risks and continue innovating in rapidly evolving areas including AI, autonomous driving and edge computing.
However, in the event that it can do all that, the company has a lot of potential to increase the stock. To conclude, the growth of Nvidia stock might not continue as it did in the past three years; but there are more than enough indicators that its long-term development will be highly positive.
The company possesses robust products, an evident position in the future of AI, and continuous demand by most industries. The company has found new areas to exploit and has created more products that can grab the attention of long-term investors. Nvidia still appears to be a company that should be retained or purchased by them.
