Nvidia’s management is excited by the long -term growth potential of the company.
Capital expenses related to the Data Center can reach $ 1 trillion a year by 2028.
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There has never been a $ 5 trillion company. The closest companies to reach this cornerstone are Microsoft(Nasdaq: msft) and Nvidia (Nasdaq: NVDA)S Both companies have market capital of about $ 3.5 trillion. Using their current growth trajectories as a guide, they could reach this $ 5 trillion brand in a few years. But who will get there first?
Signs point to NVIDIA, based on its impressive growth and the growing market of its products. Although NVIDIA has turned investors with a boat with money over the last few years, it still has a lot ahead, which makes it an attractive stock right now.
That is why NVIDIA has the potential to be the first company of $ 5 trillion by 2028.
Image source: Getty Images.
NVIDIA’s rise goes hand in hand with the rise of artificial intelligence (AI) and the growth of data centers that help process AI calculations. AI Hyperskalers (Large -scale cloud service providers that offer massive computing resources, storage and networking) Like Microsoft, they compete to install as many equipment as possible to start AI loads. In this way, they can benefit from various companies that manage AI on their servers by chargeing fees for use.
While numerous companies pursue this approach, NVIDIA is the main provider of graphic processing units (GPU) central to their work. And although there are alternatives to NVIDIA products, it has 90% or a larger share in the GPU market of the data center similar to Alphabetdominance in the search engine industry (through Google). This helps to dominate NVIDIA in perspective. It is even better that the search for data centers is increasing far faster than the growth of demand.
Almost every AI Hyperscaler has announced capital costs for record data for data in 2025. The planning, development and construction of sites on which these centers are built takes years, so this increased costs will continue to exist for several years. Third -country evaluation NVIDIA, quoted during its GTC event in 2025, said the cost of a global data center was $ 400 billion in 2024, but is expected to increase to $ 1 trillion by 2028.
For a reference, during the financial 2025 (which covers the bigger part of 2024), the NVIDIA data department has brought $ 115 billion in revenue. So, for every $ 100 spent on data centers, about $ 29 went to NVIDIA.
What will this mean to NVIDIA in the future?
Let’s use a conservative approach to these growth estimates. The captain of the Data Center is increasing to only $ 800 billion, and the NVIDIA share of these revenue drops from 29% to 25%. If this happens, Nvidia will still make revenue of about $ 160 billion alone from data centers in 2028, in the financial 2025 financial divisions for the NVIDIA center, they did not receive revenue of $ 16 billion.
Assuming that other units will not increase and combine with estimated revenue from the Data Center, we will receive $ 216 billion. This is 46% profit from today’s revenue levels.
Ycharts data.
If NVIDIA’s market capacity was increased by the relevant revenue growth, this will be $ 5.03 trillion.
There are certain warnings about this argument, such as what happens if NVIDIA margins slide or if its evaluation decreases significantly. However, we have already built some of this by removing some market share and reducing the overall digit of the dollar of the construction of the data center.
I think Nvidia will be the first company to cross the 5 -trillion threshold and will probably do so in the next few years. NVIDIA’s potential is still increasing and investors must ensure that they are invested in this best AI game for the foreseeable future.
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Susan Frey, CEO of Alphabet, is a member of the Board of Directors of Motley Fool. Keaton Duri has positions in Alphabet and Nvidia. Motley Fool has positions and recommends the alphabet, Microsoft and NVIDIA. Motley Fool recommends the following options: Long January 2026. $ 395 Microsoft calls and short January 2026 $ 405 Microsoft calls. Motley Fool has a policy of disclosure.
Forecast: This shares of artificial intelligence (AI) will reach a market cap of $ 5 trillion to 2028, originally published by Motley Fool
