Nvidia (NVDA) Stock: Company Nears $5 Trillion Milestone on Record Chip Orders

TLDR

• Nvidia shares jumped 3.1% premarket as the company approaches a historic $5 trillion market valuation.
• CEO Jensen Huang revealed over $500 billion in orders for Blackwell and Rubin AI chips at the GTC conference.
• Seven supercomputers will be built for the U.S. government as part of the company’s expansion plans.
• Wolfe Research estimates the orders could add $140 billion in data center revenue through 2026.
• Analysts maintain Strong Buy ratings with an average price target of $225, implying 12% upside potential.

Nvidia is about to make history. The company is on track to become the first ever to hit a $5 trillion market valuation.

Shares rose 3.1% in premarket trading Wednesday after CEO Jensen Huang dropped major news at the GTC conference in Washington, D.C. The company has secured more than $500 billion in orders for its upcoming AI chips.

NVIDIA Corporation, NVDA

That’s not all. Huang also announced plans to build seven supercomputers for the U.S. government.

The stock has already gained nearly 50% this year. It hit $4 trillion in July, and now it’s knocking on an even bigger door.

Wall Street Thinks There’s More to Come

Analysts are calling current forecasts too conservative. Wolfe Research analyst Chris Caso says the $500 billion figure points to “upside compared with current Wall Street forecasts.”

Caso estimates Nvidia may ship $500 billion worth of Blackwell and Rubin chips in 2025 and 2026. His original forecast was around $360 billion for those years.

That difference matters. It could mean an extra $140 billion in data center revenue and about $3 per share in additional earnings for 2026.

Cantor Fitzgerald analyst C J Muse went further. He kept his $300 price target and argued that earnings estimates are “way too low.”

Muse pointed out that even with AI bubble concerns, Nvidia trades at roughly 21 times its projected 2026 earnings. He called it “too inexpensive to ignore.”

The Blackwell chip launches later this year. Rubin follows in 2026 and will build on Blackwell’s architecture.

Walking a Political Tightrope

Nvidia’s size has made it a political football. U.S. export restrictions on advanced chips have turned the company into a key piece of Washington’s strategy against China.

The Numbers Keep Getting Bigger

A $5 trillion valuation would be larger than the entire cryptocurrency market. It would equal about half of the pan-European Stoxx 600 index.

The Santa Clara company has transformed from making graphics cards to powering the AI revolution. It’s now worth more than Apple, Microsoft, and Alphabet.

Its H100 and Blackwell processors run the large language models behind ChatGPT and other AI tools. Both Apple and Microsoft have also crossed $4 trillion in market value.

Competitors like Advanced Micro Devices are trying to catch up. Several well-funded startups are in the race too. But Nvidia remains the default choice for AI computing.

The company’s weight in the S&P 500 and Nasdaq 100 gives it outsized control over market movements. Some analysts worry valuations are getting stretched, leaving no room for mistakes.

On TipRanks, Nvidia has a Strong Buy consensus from 35 Buys, one Hold, and one Sell. The average price target sits at $225, suggesting 12% upside from current levels.

The company reports quarterly earnings on November 19.

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