Investors Eye $1 Trillion Companies: Nvidia Leads the Pack
Only a limited number of U.S. companies currently boast a market value exceeding $1 trillion. Listed below are these companies, arranged in descending order based on the potential upside (or downside) projected by Wall Street analysts’ median 12-month target prices.
- Nvidia (NASDAQ: NVDA) has a market cap of $2.7 trillion. Its median target price is $175 per share, indicating a 58% upside from the current share price of $111.
- Amazon stands at a market value of $2 trillion, with a median target price of $266 per share, suggesting a 44% upside from the current price of $185.
- Alphabet holds a market cap of $1.9 trillion, and its median target price of $210 per share implies a 34% upside from the current share price of $157.
- Apple is valued at $3 trillion, and its median target price of $250 per share reflects a 26% upside from the current share price of $198.
- Meta Platforms reaches a market cap of $1.3 trillion, with a target price of $750 per share suggesting a 38% upside from its current price of $544.
- Microsoft leads at a valuation of $2.9 trillion, and its median target price of $500 per share suggests a 29% upside from the current share price of $388.
- Berkshire Hathaway has a market cap of $1.1 trillion, and its median target price of $487 per share implies a 7% downside from the current share price of $524.
As of April 12, Wall Street analysts view Nvidia as the most attractive investment among trillion-dollar stocks. The 58% upside suggested by its median target price surpasses that of the next closest stock, Amazon, by 14 percentage points. Here’s what investors should consider regarding Nvidia.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Nvidia: The Leader in AI Accelerators
Nvidia is renowned for creating the graphics processing unit (GPU), a technology that transformed computer graphics and has become essential in accelerating complex data center workloads such as artificial intelligence (AI). Currently, Nvidia commands over 90% of the data center GPU market and more than 80% of AI accelerators.
The company’s competitiveness is bolstered by its software platform, CUDA, which features hundreds of code libraries, pretrained models, and frameworks designed to facilitate AI application development across diverse use cases including recommender systems and generative AI tools.
Nvidia also leads in adjacent data center hardware, including central processing units (CPUs), networking equipment, and chip interconnects. Notably, it dominates InfiniBand networking, a key connectivity solution for AI, enabling Nvidia to develop superior data center systems with a favorable total cost of ownership, as stated by CEO Jensen Huang.
Overcoming Challenges: DeepSeek and Export Restrictions
Recently, Nvidia faced two significant challenges that could impact its performance; however, neither is expected to hinder the company’s long-term growth. First, concerns arose when Chinese firm DeepSeek trained large language models using less computing power than U.S. companies. Initial fears suggested that Nvidia’s sales might decline as AI infrastructure investment slowed. Contrary to these assumptions, demand for Nvidia’s GPUs is increasing, as more companies are finding AI training more affordable through these innovative techniques.
Analysts also highlight the rise of advanced robotics and complex reasoning models, indicating that AI will soon require 100 times more computing power than forecasted a year ago, according to Huang.
The second challenge involves U.S. government-imposed chip export restrictions. Recent developments provided some positive news: while Nvidia cannot sell its most advanced GPUs in China, reports suggest that the government will not ban less powerful H20 processors. This decision may alleviate some potential market concerns, per NPR.
Image source: Getty Images.
Nvidia Poised for Success Amid AI’s Physical Revolution
Generative AI marks just the latest phase in a broader technological evolution. In his keynote at the Computex 2024 event, Huang remarked, “The next wave of AI is here. Robotics powered by physical AI will revolutionize industries.” Nvidia aims to capitalize on this transformation through continuous innovation in both hardware and software.
Nvidia’s Isaac platform facilitates robotics application development, enabling engineers to create solutions for industrial robotic arms, autonomous mobile robots, and humanoid robots. Additionally, Nvidia recently launched Isaac GR00T, a customizable model designed for humanoid reasoning and skills. Analysts at Citigroup estimate that the market for autonomous humanoids could reach $1 trillion by 2040.
Looking ahead, Grand View Research forecasts that spending on AI hardware, software, and services will grow by 35% annually up to 2030. Meanwhile, Wall Street anticipates Nvidia’s earnings will increase by 38% annually through fiscal 2027, which concludes in January. This projection suggests that Nvidia’s current valuation of 37 times earnings appears attractive. Investors ready to commit for a minimum of three years may find it worthwhile to consider purchasing shares today.
Should You Invest $1,000 in Nvidia Now?
Before committing to investment in Nvidia, consider the following:
The analyst team at Motley Fool Stock Advisor has recently identified their view of the 10 best stocks for investors to buy at this time, and Nvidia was not among those selected. The stocks that made the list are anticipated to yield substantial returns in the upcoming years.
Considering Netflix’s status on the list from December 17, 2004… an investment of $1,000 would now be worth $495,226!* Or when Nvidia was included on April 15, 2005… a $1,000 investment would have grown to $679,900!*
It is important to note that Stock Advisor has a total average return of 796%, significantly outperforming the 155% total return of the S&P 500. Don’t miss out on accessing the latest list of top stocks, available when you join Stock Advisor.
*Stock Advisor returns as of April 10, 2025
Suzanne Frey, an executive at Alphabet, is a board member at The Motley Fool. Citigroup is an advertising partner of Motley Fool Money. Randi Zuckerberg, a former director of market development at Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is also a board member. John Mackey, the former CEO of Whole Foods Market, is a board member too. Trevor Jennewine has investments in Amazon and Nvidia, while The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, and Nvidia. The Motley Fool advocates long January 2026 $395 calls and short January 2026 $405 calls on Microsoft. The Motley Fool maintains a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
