Where Will Nvidia Stock Be in 5 Years?

The past five years have been rewarding for Nvidia (NASDAQ: NVDA) investors. The semiconductor specialist’s stock is a solid multibagger, turning a January 2019 investment of $1,000 into $14,550 as of this writing.

This terrific jump in Nvidia’s stock price over the past decade can be attributed to the outstanding growth in the company’s revenue and earnings. This growth is fueled by multiple catalysts, including the booming demand for gaming hardware, the growing demand for high-performance computing applications, the increasing deployment of semiconductors in cars, and now the need for graphics cards for training artificial intelligence (AI) models.

The good part is that Nvidia is setting itself up to deliver even stronger returns over the next five years through its aggressive product roadmap, which should allow it to capitalize on multiple multi-billion-dollar opportunities. It’s worth noting that the company pointed out a couple of years ago that it sees a $1 trillion revenue opportunity across several end markets such as automotive, gaming, enterprise software, and chips and systems.

Given that it’s on track to finish fiscal 2024 (which will end this month) with $59 billion in revenue, it won’t be surprising to see Nvidia’s revenue and earnings growth accelerating big time over the next decade as it dives deeper into its addressable market. Let’s look at the reasons why that may happen and where the stock could be after five years.

Nvidia is growing at an eye-popping pace that shows no signs of slowing

When Nvidia reported its fiscal 2019 results five years ago, the company generated annual revenue of $11.7 billion. So, Nvidia’s revenue is on track to increase 5 times in a space of five years considering its fiscal 2024 forecast, translating into a compound annual growth rate (CAGR) of 38%. A similar CAGR over the next five years would take Nvidia’s annual revenue to a whopping $295 billion in fiscal 2029.

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However, certain Wall Street…