By John Bromels, The Motley Fool
Publication Date: 2026-08-13 08:15:00
I know, I know: Nvidia (NASDAQ: NVDA) is already the largest company in the world, with a current market cap of $5.4 trillion. If its stock rises to about $250 per share, it would make Nvidia the first $6 trillion company in history.
To put that in perspective, at $6 trillion, Nvidia would be worth more than Amazon, Meta Platforms, Tesla, and Netflix combined.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
But given how much Nvidia’s revenue and earnings have grown, and how much CEO Jensen Huang has done to ensure the company’s long-term dominance, it’s actually kind of amazing that the company isn’t already trading at $250 per share … or more.
Here’s the simple math that explains why I’m predicting a $6 trillion market cap for Nvidia by the end of the year.
All about value
Over the last three years, Nvidia’s revenue, profits, and share price have all soared, but its valuation has actually dropped. Its price-to-earnings (P/E) ratio, which stood at about 100 times trailing earnings three years ago, has now dropped to 34. Its price-to-sales (P/S) ratio, which was at about 35 times sales, has tumbled to 22 over the same time frame.
And…
