Nvidia is on track to hit $4 trillion market cap, with strong revenue growth and potential.

From Nasdaq: 2024-11-24 14:45:00

Nvidia (NASDAQ: NVDA) surpassed expectations with a 94% revenue jump to $35.1 billion and adjusted EPS doubling to $0.81 in Q3, exceeding estimates. Despite a slight share pullback, Nvidia’s market cap now stands at $3.5 trillion, making it the most valuable company globally, on track to hit $4 trillion soon.

Nvidia’s growth is still constrained by supply, with demand exceeding production capabilities due to chip supply limitations. The company’s Blackwell platform is seeing “staggering” demand, with revenue reflecting potential rather than actual demand. Analysts remain bullish on Nvidia, with competition from AMD and Intel not posing a significant threat.

Nvidia’s stock may seem expensive with a trailing P/E of 55, but its rapid growth makes it undervalued. Forward estimates predict an EPS of $4.31 in fiscal 2026, giving it a forward P/E of 34. With EPS consistently beating estimates, the stock could see a forward P/E of 31 next year, aligning with the market average.

To reach a market cap of $4 trillion, Nvidia only needs a 14% increase, which seems achievable. The company remains a dominant force in the computing platform industry, poised to hit the milestone soon. Investors should consider Nvidia’s potential for significant returns, as it remains a top performer in the market.



Read more at Nasdaq: Will Nvidia Reach $4 Trillion? 3 Reasons It Could Happen by the End of the Year.