Nvidia Stock Hasn’t Peaked: Analyst Forecasts $500 by 2029
Nvidia’s (NASDAQ: NVDA) 19% return over the past year might suggest the artificial intelligence pioneer’s best days are behind it. After all, the PHLX Semiconductor Sector index surged 109% during the same period. But that view may be premature.
The AI infrastructure boom that has fueled Nvidia’s growth over the last four years shows no signs of fading. More importantly, the company is expanding into new AI niches—from server CPUs to next-generation GPU architectures—that could provide powerful tailwinds for years to come.
A survey by Info-Tech Research Group found that 94% of developers using AI tools reported higher productivity, while 83% saw fewer defects. Consulting firm PwC estimates that companies leveraging AI enjoy 40% higher productivity compared to those least exposed. Such figures underscore why demand for Nvidia’s chips remains insatiable.
Morgan Stanley projects that capital expenditures for AI infrastructure will reach $1.4 trillion by 2028, with cumulative spending of $2.1 trillion between 2025 and 2027. Nvidia, commanding an estimated 80% share of the AI chip market, is uniquely positioned to capture a significant portion of that spending.
The company itself anticipates $1 trillion in chip orders for its Blackwell and Vera Rubin systems in 2026 and 2027—a sharp increase from the $193.7 billion in data center revenue it reported in fiscal 2026 (which ended in January this year). Another catalyst is Nvidia’s Vera server CPU, which the company believes opens a $200 billion total addressable market. Nvidia expects $20 billion in Vera CPU revenue this fiscal year alone, a remarkable figure considering the product has only recently begun shipping.
Analysts currently project Nvidia’s earnings per share will rise 88% to $8.99 in fiscal 2027, followed by robust double-digit growth in subsequent years. Yet even these estimates may prove conservative. If Nvidia’s EPS reaches $15.98 by fiscal 2029 (ending January 2029), and investors apply a price-to-earnings multiple of 33—in line with the Nasdaq-100—the stock would trade at approximately $527. That’s roughly 2.5 times its current level, suggesting significant upside from today’s 31.7 times earnings valuation.
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Prediction: Nvidia Stock Hasn’t Peaked. It Is Going to $500 by 2029 was originally published by The Motley Fool.