Nvidia Is Worth $5 Trillion Once Again. Here’s Why It Could Become the First $10 Trillion Stock Within the Next 3 Years. | The Motley Fool

In October, Nvidia (NVDA 0.48%) became the world’s first company to achieve a $5 trillion market cap. However, the semiconductor giant’s stock hit a rough patch after that due to various factors such as concerns about the sustainability of heavy spending on artificial intelligence (AI) infrastructure and how geopolitical issues might affect the company.

So, while the broader PHLX Semiconductor Sector index has soared by 40% over the past six months, Nvidia’s gains were just 11%. The good news for investors is that Nvidia stock has regained its upward momentum lately, rising more than 21% in April as of this writing. This has allowed it to reclaim its $5 trillion market cap crown.

It won’t be surprising to see Nvidia sustaining that momentum. In fact, there is a good chance it will become the world’s first $10 trillion company within the next three years.

Nvidia is poised to win big in the AI inference era

Nvidia’s graphics processing units (GPUs) have played a central role in the training of popular large language models (LLMs) over the past three and a half years. Now, the company is setting itself up for growth in the AI inference era.

Today’s Change

(-0.48%) $-0.96

Current Price

$198.61

Key Data Points

Market Cap

$4.8T

Day’s Range

$197.13 – $202.95

52wk Range

$110.82 – $216.82

Volume

4.5M

Avg Vol

175M

Gross Margin

71.07%

Dividend Yield

0.02%

Inference is simply the process of putting trained AI models to work on new problems using previously unseen data. However,…