Nvidia Could Hit $1 Trillion Annual Revenue By 2030, Says Analyst: Report

Nvidia (NVDA) could become the first company to generate $1 trillion in annual sales within five years, according to New Street Research analyst Pierre Ferragu.

Nvidia’s stock dipped as much as 3.5% in afternoon trade on Friday. However, on Stocktwits, retail sentiment around the AI bellwether remained in ‘extremely bullish’ territory amid ‘extremely high’ levels of chatter over the past day.

Ferragu told Barron’s that he projects $3 trillion to $4 trillion in annual AI capital spending by 2030, in line with CEO Jensen Huang’s outlook. If Nvidia maintains its estimated 55% to 60% market share, he said it could capture $1 trillion to $1.2 trillion in data-center revenue alone. 

The report added that, in comparison, Wall Street expects Nvidia to generate $84 billion in data center revenue at the end of fiscal year 2026. Overall revenue for the year is expected to be around $206 billion, according to Koyfin data. Last year, Nvidia reported annual revenue of $130 billion.

The company also posted its second-quarter (Q2) earnings on Wednesday, which surpassed Wall Street’s estimates. It reported earnings per share (EPS) of $1.05 on revenue of $46.74 billion, beating analyst estimates of $1.01 per share on revenue of $46.05 billion, according to Stocktwits data.

However, Nvidia’s guidance for the third quarter (Q3) disappointed investors, stating that sales would come in at roughly $54 billion. According to a Bloomberg report, while the number was largely in line with the average Wall Street estimate, some analysts were expecting sales to exceed $60 billion. 

KeyBanc, Needham, and other analysts forecast that the final sales number could be higher if geopolitical issues with China are resolved in the near term, as the guidance does not include revenue from China, as per TheFly.

Nvidia’s stock has gained 28% this year and more than 43% over the past 12 months.

Read also: Musk Says Tesla Will Finish Master Plan Part Deux In 2026, Promises ‘Concise’ Master Plan 4

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