Investors putting $10,000 into Nvidia (NASDAQ: NVDA) ten years ago would see their investment grow to over $2.6 million today. Nvidia has achieved a market capitalization of approximately $3 trillion and reported trailing-12-month revenue of $80 billion.
Despite its prominent position in the AI chip market, holding about 90% share, analysts suggest that it will be challenging for Nvidia to replicate past performance. The company faces significant hurdles due to its massive valuation, which is nearly equivalent to an eighth of the U.S. economy, making a 100-fold return to reach a $300 trillion valuation unrealistic.
While the stock may not yield the same extraordinary returns as it has in the past, analysts project earnings growth of around 37% annually over the next three to five years, indicating that Nvidia could still contribute positively to a diversified portfolio.
