I Predicted Nvidia Would Be a $5 Trillion Company in 2025. Here’s Why I Was Right (and Wrong). | The Motley Fool

At the end of 2024, I predicted that Nvidia (NVDA 4.38%) would be a $5 trillion company in 2025. The reasons for this prediction were rather simple: The AI hyperscalers would continue spending at a rapid pace, and I was right on that account.

However, I was wrong about Nvidia’s valuation multiples. Nvidia breached the $5 trillion market cap level, and although it’s below that threshold right now, I think it will return in 2026.

Nvidia was a $5 trillion company, but only briefly

Nvidia entered 2025 valued at just over $3 trillion, so it would take a significant gain for it to breach the $5 trillion mark. Following President Trump’s tariff announcements in April, this prediction was in even worse shape as Nvidia was nearly a $2 trillion company.

NVDA Market Cap data by YCharts

However, as the market rallied throughout the year, Nvidia became the first $5 trillion company in October, although it is no longer at that level.

What drove it there was the insatiable demand for its graphics processing units (GPUs), and AI hyperscalers willing to spend a near-unlimited amount of money on computing equipment. That trend didn’t shift throughout 2025, and there are no indications it will change in 2026. As a result, I think Nvidia will end the year solidly in the $5 trillion club.

Today’s Change

(-4.38%) $-8.16

Current Price

$178.07

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$4.5T

Day’s Range

$177.61 – $182.38

52wk Range

$86.62 – $