Prediction: Nvidia Will Hit a $10 Trillion Market Cap by the End of 2028 | The Motley Fool

Nvidia (NVDA +2.12%) is getting closer and closer to setting a new market cap record. It is currently a $5.6 trillion company, placing a $6 trillion market cap within reach by the end of this year. But where will it be by 2028?

Judging by Nvidia’s current outlook and valuations, it will reach an unexpected level: I think it can easily breach the $10 trillion mark and go even higher. That makes the stock a no-brainer buy, as it indicates it will double in about two and a quarter years. So, how will it reach a $10 trillion market cap?

Easy: It just needs to hit projections.

Nvidia is not an expensive stock

Somewhere along the way, Nvidia’s stock developed a narrative that it was expensive. While I’ll buy that argument from a trailing-earnings standpoint if you rewind to 2024, that’s truly not the case right now. Nvidia trades at 29.5 times trailing earnings, which is about where you’d expect a big tech stock to trade. The problem is, Nvidia is no ordinary big tech stock.

NVDA PE Ratio data by YCharts

Nvidia more than doubled its revenue year over year in its most recent quarterly results, and it told investors it expects 70% revenue growth in the next fiscal year. Find another big tech stock that’s expecting that kind of growth that isn’t valued at this low a level. It’s not possible.

Nvidia is actually quite cheap, and despite management telling investors that it’s going to grow rapidly next year and several other firms backing that…