An investment of $1,000 made in shares of Nvidia (NVDA 1.53%) five years ago is now worth just over $13,500. This multibagger performance is a result of the terrific growth in Nvidia's revenue and earnings during this period, driven mainly by the massive demand for the company's artificial intelligence (AI) chip systems.
The stunning surge in Nvidia stock over the past five years has made it the world's largest company, with a market cap of $4.5 trillion. Not surprisingly, investors may now be wondering if it is worth holding Nvidia stock for the next five years, considering the size it has already achieved.
Let's examine Nvidia's prospects for the next five years and try to find out if it is still worth buying.
Image source: Nvidia.
Nvidia can still clock healthy growth over the next five years
Expecting Nvidia stock to jump by another 14x in the future seems absurd, as that would send its market cap past a whopping $60 trillion. The global economy, for instance, was worth $117 trillion in 2025, and it is expected to grow at just over 3% a year going forward. However, the good part is that Nvidia is operating in a fast-growing industry that seems poised to clock healthy growth through the end of the decade.
Nvidia's revenue in fiscal 2021 (which ended in January 2021) was $16.7 billion. The company is on track to end fiscal 2026 with an estimated $213 billion in revenue. Looking ahead, Nvidia's total addressable market (TAM) is still big enough to help it grow further. Bank of America estimates that the market for the AI accelerator chips that Nvidia sells could be worth a whopping $900 billion in 2030.
Nvidia gets 90% of its total revenue from selling chips that go into data centers for handling AI workloads. Nvidia's fiscal 2026 revenue estimate of $213 billion indicates that it would sell just over $190 billion worth of data center chips this year. So, the $900 billion end-market opportunity suggests that Nvidia's data center business can still fly higher, considering its strong share of this market.
Mizuho Securities estimates that Nvidia's share of the AI accelerator market stands at between 70% to 95%. The company is facing stiffer competition in this market, with custom chips from the likes of Broadcom and Marvell gaining traction, and even AMD stepping up its game by launching more powerful chips. So, it won't be surprising to see Nvidia's share of the AI accelerator market coming under threat.
However, investors shouldn't forget that Nvidia's dominance in AI chips stems not just from the technological advantage of its chips, but also from the company's impressive control over the supply chain. The semiconductor giant has reportedly secured a nice chunk of the supply of foundry partner Taiwan Semiconductor Manufacturing's next-generation process nodes that should allow it to maintain its healthy lead in AI accelerators through the end of the decade.
But even if Nvidia's share of this market slips to 60% in 2030 for the sake of conservatism, its data center revenue could still come in at $540 billion (based on the $900 billion end-market estimate). That would be nearly three times the data center revenue the company is expected to generate in the current fiscal year.
NASDAQ: NVDA
Key Data Points
At the same time, there are additional catalysts that could help make Nvidia a much bigger company over the next five years. For instance, the gaming and AI personal computer (PC) business is in fine form, recording 30% year-over-year growth in revenue in the third quarter of fiscal 2026 to $4.3 billion. This business presents a multi-billion-dollar growth opportunity for the company in the long run, as the demand for graphics cards used in AI PCs is likely to grow at a healthy pace.
Similarly, the company's automotive business is gaining solid momentum. Its revenue was up by 32% year over year in the last reported quarter to $592 million. Though it is a small part of Nvidia's business right now, the company is partnering with several automotive companies and component manufacturers that could help it capitalize on a market that's expected to be worth $300 billion in the long run.
All this suggests that Nvidia's growth is likely to remain solid over the next five years, paving the way for more potential upside in the stock price.
Here's how much upside this stock could deliver
Nvidia's earnings are estimated to increase by 57% in the current fiscal year (which ends this month) to $4.69 per share. Importantly, analysts expect healthy double-digit growth in earnings over the next couple of fiscal years as well.
Data by YCharts. EPS = earnings per share.
There is a good chance of Nvidia maintaining robust earnings growth levels beyond the next two fiscal years, driven by the multi-billion-dollar catalysts that it is sitting on. But even if its earnings grow at a conservative rate of 20% in the three fiscal years after fiscal 2028, Nvidia's bottom line could jump to $16.73 per share after five years.
The Nasdaq-100 has a forward earnings multiple of 25.6, and Nvidia is trading at a slight discount to that multiple right now. Assuming Nvidia is trading in line with the Nasdaq-100's forward earnings multiple after five years (using the index as a proxy for tech stocks), its stock price could hit $428. That points toward potential gains of 130% from current levels, though don't be surprised to see it delivering bigger gains due to a potentially stronger jump in earnings that could be rewarded with a higher multiple.
Nvidia can still make investors richer in the next five years. That suggests that this AI stock remains worth buying even after the incredible gains it has delivered to investors in recent years.
