Loop Capital Predicts NVIDIA (NVDA) Will Reach a $6 Trillion Market Valuation

This article does not constitute investment advice. The author holds no stakes in any stocks referenced herein.

Positive Outlook on NVIDIA’s Future Growth

Recent discussions have highlighted NVIDIA’s successful mitigation of several bearish catalysts, leading hedge fund managers in Boston to speculate on what might prevent the stock from achieving a significant breakthrough.

An Analyst’s Bold Prediction

In a notable endorsement of NVIDIA, Loop Capital’s analyst Ananda Baruah has set a striking price target of $250 for NVIDIA shares, suggesting a staggering market capitalization of $6 trillion.

Key Drivers of Growth

Baruah’s optimism is anchored in compelling projections from Loop Capital’s supply chain analyst, John Donovan. He underscored that GPU spending could surge to $2 trillion by 2028, which would account for an impressive 50 to 60 percent of the total installed compute capacity. Currently, GPUs comprise merely 15 percent of the global compute landscape.

This perspective echoes NVIDIA’s commentary during its Q1’26 earnings call, where they stated they have insights into “tens of gigawatts”of AI infrastructure projects. Notably, NVIDIA has disclosed that it generates between $40 billion and $50 billion in revenue per gigawatt of new AI infrastructure. UBS estimates that, under a conservative scenario with a 20GW pipeline, NVIDIA could anticipate around $1 trillion in revenue.

The Future of AI and NVIDIA’s Role

Looking ahead, Baruah forecasts that the next phase of NVIDIA’s expansion will be fueled by hyperscalers, government-driven AI data centers, generative AI, and AI-based accelerated computing technologies.

Caution from Market Observers

Conversely, BofA analyst Vivek Arya adopts a more cautious stance, predicting a total addressable market (TAM) for global data centers to hover around $1 trillion by 2030.

Projected GPU Shipments and Pricing

Loop Capital anticipates that NVIDIA will ship approximately 6.5 million GPUs during the current calendar year and increase this to 7.5 million in 2026, all while maintaining an average selling price (ASP) exceeding $40, 000.

The Valuation Debate

Despite these bullish estimates, Baruah acknowledges a caveat: NVIDIA’s ability to meet these projections might not necessarily secure the coveted $6 trillion valuation. This is largely due to potential compressions in the company’s price-to-earnings (P/E) ratio, historically around 30x for the past three years.

Current Stock Performance

NVIDIA’s shares are currently trading at $152, reflecting a 3 percent increase as of the latest update. However, for the year, the stock has only appreciated by about 10 percent.

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