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Nvidia (NASDAQ:NVDA) has made investors significantly richer over the past four years, turning a $10,000 investment into nearly $179,000 as of this writing.
This massive surge in Nvidia’s shares has been fueled by the advent of artificial intelligence (AI). When OpenAI’s <a href="https://www.fool.com/investing/stock-market/market-sectors/information-technology/ai-stocks/chatgpt/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=8697644b-9be2-4a7f-9b00-0fbe45aad26c” rel=”nofollow noopener” target=”_blank”>ChatGPT, introduced publicly in November 2022, became a big hit, companies lined up to buy Nvidia’s graphics processing units (GPUs) after it emerged that the semiconductor giant’s chips played an instrumental role in training the chatbot.
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The AI economy and Nvidia have come a long way since then. AI is now finding its way into several industries, boosting productivity and economic growth. The good news for Nvidia investors is that AI adoption isn’t showing any signs of slowing, which explains why the company continues to deliver robust growth even after becoming significantly larger over the past four years.
We will take a closer look at the company’s prospects in this article and assess whether investing $10,000 in Nvidia stock over the next five years could be a profitable move.
Nvidia is the world’s largest company, but it can become even bigger
Nvidia’s AI-driven surge has made it the world’s largest company with a market cap of $5.2 trillion. So, expecting another 20x jump in Nvidia’s stock price over the next five years would be quite absurd, as it would put its market cap past $100 trillion. However, that doesn’t mean Nvidia stock can’t climb higher over the next five years.
After all, the company is still growing at an impressive pace despite the scale it has achieved. Nvidia’s revenue in the first six months of fiscal 2027 (which will end in January 2027) increased by 96% over the same period last year to $177.8 billion. The company expects fiscal Q3 revenue of $108 billion, an 89% jump from the year-ago period.
Analysts expect a 91% spike in Nvidia’s revenue for fiscal 2027 to $411.6 billion. Meanwhile, earnings per share are expected to almost double in fiscal 2027 to $9.31. Importantly, Nvidia CEO Jensen Huang is confident that the company’s growth will continue unabated next year. He recently noted at a conference that the number of chips the company sells will double in 2027
