Prediction: This Is What a $1,000 Investment in Nvidia Will Be Worth by 2029
An investment of $1,000 made in Nvidia (NASDAQ:NVDA) stock three years ago is now worth an impressive $4,500 This impressive multibagger performance has been fueled by the company’s dominant position in the artificial intelligence (AI) chip market, driving remarkable growth in revenue and earnings over this period
Nvidia is now the <a href="https://www.fool.com/research/largest-companies-by-market-cap/?utm_source=yahoo-host-full&utm_medium=feed&utm_campaign=article&referring_guid=9981658a-0043-4d3c-b499-6af14ae241fd” rel=”nofollow noopener” target=”_blank”>world’s largest company by market cap. Investors may therefore be wondering whether this stock can deliver further upside following its stunning run over the past three years. The good news is that Nvidia’s growth rate isn’t going to slow down any time soon, as evident from its latest quarterly report.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Let’s take a closer look at Nvidia’s catalysts and its growth potential for the next three years to check how much a $1,000 investment in this AI stock could be in 2029.
Nvidia’s guidance points toward outstanding earnings growth for the next three years
When Nvidia released its fiscal 2027 second-quarter results (for the three months ended July 26) on Aug. 26, it reported a year-over-year increase of 120% in non-GAAP earnings per share to $2.22. The strong bottom-line growth was driven by a 106% year-over-year jump in revenue, along with an improvement of 2.5 percentage points in Nvidia’s non-GAAP gross margin.
Importantly, Nvidia management is confident of sustaining healthy gross margin levels despite higher component costs. For instance, the company estimates a non-GAAP gross margin of 74% in the current quarter, followed by a dip to 71% to 72% in fiscal Q4. The chip designer estimates that its gross margin will settle in the 72%-73% range next year, driven by price increases to offset higher component costs.
Nvidia’s ability to sustain its margin profile, along with incremental spending on AI data center infrastructure, should ensure that its earnings per share continue to improve at a nice clip. After all, Nvidia sees capital spending by the top five U.S. hyperscalers increasing to $1.3 trillion in 2027, up from an estimated $800 billion in 2026.
Moreover, this estimate doesn’t include the capital expenses incurred by neocloud providers and pure-play AI companies. Not surprisingly, market research provider Dell’Oro Group estimates that overall data center capex could exceed $3 trillion by 2030 to support the growing demand for AI workloads in the cloud.
