Nvidia’s Surge and Market Outlook
Nvidia (NASDAQ: NVDA) shares surged 42% over the past three months, significantly outperforming the S&P 500’s 15% gain. The semiconductor giant’s dominance in the AI market is bolstered by expanding demand for sovereign AI infrastructure, with analysts predicting the company’s market cap could double within three years.
Growth in Sovereign AI Infrastructure
Citi recently raised its price target for Nvidia to $190 per share, forecasting that the sovereign AI infrastructure market could generate $50 billion annually. Nvidia is involved in partnerships with several European countries and various nations in the Middle East, contributing to “billions of dollars” in revenue for 2025. Their data center revenue reached $115 billion for fiscal 2025, a 142% growth from the previous year.
Future Projections
Despite potential market share declines, revenue from AI chips could reach $280 billion by 2028, based on a total addressable market of $563 billion. Coupled with expected growth in the non-data center business, Nvidia’s total revenue could hit $300 billion, suggesting a future market cap of $7.8 trillion.
