Anytime Nvidia (NASDAQ:NVDA) stock goes sideways or lower for a few weeks or months, some investors are sure to feel just a tad concerned. And though NVDA shares may once again look and feel “toppy,” long-term holders of the name have likely been conditioned to view such sideways action as an opportunity to top up before the stock experiences its next big melt-up. Of course, no stock, no matter how impressive, can keep soaring forever.

And with Nvidia now flirting with a $3.5 trillion market cap, another doubling in shares would put it close to $7 trillion, making it not only the largest company on Earth but one that’s potentially much larger than the second-largest. Sure, some may be of the opinion that size may limit upside.

However, there’s really no ceiling when it comes to market cap. And though a multi-trillion-dollar valuation may seem extreme or even unwarranted, what’s stopping a firm from hitting the $10 trillion milestone? I’d argue that such levels are psychological and shouldn’t be the basis of how high a stock can fly and whether some sort of ceiling has been reached.

Key Points About This Article

• Just because Nvidia is a $3.5 trillion company doesn’t mean it can’t hit $5 trillion (or even $10 trillion in due time) as it continues executing its game plan.
• The new year could see new, exciting AI innovations and applications that keep Nvidia chips flying off shelves.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Nvidia could hit the $5 trillion mark in short order.

Moving into 2025, Nvidia may be well on its way to passing the $5 trillion mark as investors prepare for its next generation of products. Rosenblatt analyst Hans Mosesmann recently hiked his price target on NVDA stock to $220 (from $200 per share), which entails close to 54% in upside. Continued strength in AI demand and the data center boom are primary reasons for his bullishness. Mosesmann isn’t the only analyst on Wall Street continuing to pound the table on the AI leader, either.

In any case, Nvidia is rolling right along, with its new Blackwell chip poised to jolt quarters in 2025. That said, Nvidia will need to keep firing on all cylinders as other players in the AI chip scene look to do their best to position themselves as share-takers. I don’t think they’ll have much luck as they go toe-to-toe with a giant. And while competition is bound to intensify from here (think the Magnificent Seven firms doubling down on their own AI acceleration hardware), it’s becoming difficult to fathom a scenario that sees any firm taking the belt from Nvidia’s waist.

It’s the heavyweight champ of AI, and it’s the favorite to defend its belt as it attempts to add to its sizeable lead. Indeed, if you believe that 2025 will be a year that sees real money-making AI applications take off, perhaps there’s still a chance Nvidia stock is being undervalued. With Nvidia’s chip dominance already factored in, the big question is whether the AI market can continue its expansion in the new year or whether it’ll hit a wall.

2025 could be a big year for AI and Nvidia

As ChatGPT and Apple (NASDAQ:AAPL) Intelligence eventually find their way into billions of devices while firms like Microsoft (NASDAQ:MSFT) and Salesforce (NYSE:CRM) reinvent the future of work with AI copilots and agents, it’s becoming increasingly likely that there’s more room to go with this ongoing AI revolution.

Further, let’s not forget about other Magnificent Seven players who are fighting for AI dominance in their respective corners of the tech scene. And, perhaps OpenAI, the firm that started the AI frenzy around two years ago, could shock and awe again once GPT-5 and AI video generator launch (still no release dates for either innovation).

If I were to bet, I’d say there’s a chance that GPT-5 could be released in the second half of 2025. And while there’s a high bar to pass when it comes to impressing the public who’s currently getting used to GPT-4o, I wouldn’t bet against Sam Altman and company as they look to level up their models.

In any case, there’s a lot that can keep the AI boom going hot in 2025 and 2026. If it stays hot, the big trillion-dollar question becomes if Nvidia can make enough Blackwell chips to feed the demand.

The bottom line

There’s a lot of AI innovation to look forward to in 2025. Whether it’s agents, copilots, ChatGPT functionality on iOS, the potential launch of GPT-5, or an AI innovation that’s not even on our radars yet, I think it’s a mistake to think the AI boom is closing in on a peak.

Once we roll over the peak, NVDA stock will be punished—perhaps severely. But I think we’re a long way off from such a scenario as Nvidia looks to Rubin (its next next-generation chip) to outclass the competition in an even bigger way.

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