Nvidia stock (NASDAQ:NVDA) has defied gravity for over a decade, climbing an eye-watering 28,000% and becoming the largest publicly traded company with a market cap of $3.44 trillion. Yet, even after this historic run, many analysts believe Nvidia stock still has room to run—especially as the artificial intelligence (AI) revolution continues to gain momentum.
A $1,000 investment in NVDA stock in June 2015 would be worth about $280,000 today. But despite its outsized gains, Nvidia continues to show rapid growth and market dominance in AI hardware, with Wall Street firms like Morgan Stanley reaffirming an “Overweight” rating and calling it a “unique” opportunity.
Blockbuster Q1 Earnings Power Nvidia Stock
In its fiscal Q1 earnings report, Nvidia posted revenue of $44.06 billion, up 60% year over year and ahead of estimates. Earnings per share came in at $0.96, slightly above forecasts. The real engine of growth? Its data center segment, which generated $39.1 billion—88% of total sales—thanks to surging demand for AI infrastructure.
This strong showing underscores why Nvidia stock continues to attract bullish sentiment. Demand for Nvidia’s AI chips spans hyperscalers, enterprises, and even governments, all racing to build out infrastructure for next-generation AI.
China Export Restrictions Weigh, But Not Enough to Stop Growth
Despite stellar results, Nvidia faced headwinds due to U.S. government restrictions on chip exports to China. The ban on its H20 processor led to a $4.5 billion inventory write-down and an estimated $2.5 billion in lost sales. CEO Jensen Huang described China as a $50 billion market “closed to U.S. industry,” and warned that continued restrictions could push Chinese developers toward domestic alternatives.
Yet even with China largely off the table, Nvidia stock remains resilient. Sales momentum in other regions and across diverse product lines—including its next-generation Blackwell GPUs—is keeping the growth engine humming.
Nvidia’s Expanding AI Ecosystem
Beyond data centers, Nvidia is tapping into multiple AI verticals. Gaming revenue climbed 42% to $3.8 billion, while automotive and robotics soared 72% to $567 million. Demand for AI inference—where models deliver responses in real-time—is creating a massive addressable market.
Microsoft (NASDAQ:MSFT), a major customer, has deployed tens of thousands of Blackwell GPUs and plans to expand that number significantly, largely due to its partnership with OpenAI. Meanwhile, companies like Yum! Brands (NYSE:YUM) and Capital One (NYSE:COF) are deploying Nvidia’s enterprise AI tools in operations and customer service.
Sovereign and Industrial AI Drive Long-Term Potential
Nvidia is also capturing the attention of national governments. Countries across the Middle East and Asia are investing in AI as critical infrastructure. Recent announcements include a 500-megawatt AI hub in Saudi Arabia and a 5-gigawatt facility in the UAE—both relying on Nvidia’s hardware.
On the industrial side, companies such as Taiwan Semiconductor (NYSE:TSM), Foxconn, and Pegatron are using Nvidia’s Omniverse platform for digital twins, factory simulations, and defect detection—applications that tie directly into global reshoring and smart manufacturing trends.
Nvidia Stock Price Forecast: Still Room to Climb
Analysts remain overwhelmingly positive. Of the 44 analysts covering NVDA, 37 rate it a “Strong Buy,” and the average 12-month target price is $173—roughly 24% above its current level. Forecasts suggest adjusted earnings could grow from $2.99 in fiscal 2025 to $7.31 by fiscal 2030, reinforcing Nvidia’s long-term upside.
Final Thoughts: Nvidia Stock Defies Limits
In an age where many high-flying stocks stumble, Nvidia stock continues to defy expectations. With demand for AI computing intensifying and new markets emerging across sovereign, enterprise, and industrial sectors, Nvidia appears poised to remain at the center of a global AI transformation.
Even after a 28,000% return, the case for NVDA stock as a long-term compounder is as compelling as ever.
