Ten stocks traded on U.S. exchanges currently have a market capitalization of at least $1 trillion. The following list places them in descending order based on the upside or downside implied by the average target price among Wall Street analysts. Data was collected from LSEG on Jan. 14.
- Nvidia (NVDA 1.48%): The average target of $254 per share implies 40% upside from its current share price of $182.
- Broadcom: The average target of $459 per share implies 37% upside from its current share price of $336.
- Meta Platforms: The average target of $832 per share implies 35% upside from its current share price of $618.
- Microsoft: The average target of $620 per share implies 34% upside from its current share price of $462.
- Amazon: The average target of $291 per share implies 23% upside from its current share price of $237.
- Apple: The average target of $286 per share implies 11% upside from its current share price of $258.
- Berkshire Hathaway: The average target of $538 per share implies 9% upside from its current share price of $494.
- Alphabet: The average target of $322 per share implies 3% downside from its current share price of $333.
- Taiwan Semiconductor: The average target of $313 per share implies 4% downside from its current share price of $327.
- Tesla: The average target of $390 per share implies 11% downside from its current share price of $436.
The consensus target prices listed above suggest Nvidia is the best trillion-dollar stock to buy right now, though Broadcom is a close second. Similarly, Wall Street analysts generally see Tesla as the worst trillion-dollar stock to buy right now.
Here's what prospective investors should know about Nvidia.
Image source: Getty Images.
Nvidia systems are the foundation of the artificial intelligence revolution
Nvidia is best known for its graphics processing units (GPUs), chips also called data center accelerators because they speed up demanding workloads like artificial intelligence (AI). Nvidia dominates the data center accelerator market with nearly 90% market share, and many analysts expect the company to maintain similar market share due to its full-stack strategy.
To elaborate, while Nvidia GPUs offer unmatched performance and power efficiency, the company is truly formidable because it pairs its GPUs with adjacent central processing units (CPUs) and networking gear. Nvidia also provides a robust ecosystem of software development tools called CUDA, something custom AI accelerators built by competitors like Broadcom lack.
Demand for generative AI has been a powerful growth driver for Nvidia. The company not only supplies the data center accelerators and networking equipment needed for training and inference workloads, but also the developer tools (code libraries, pretrained models, and application frameworks) needed to create generative AI software products.
Ahead, Nvidia has an equally compelling opportunity in physical AI, meaning self-driving cars and autonomous robots. Here, it supplies the data center hardware and software needed to develop the underlying AI models, as well as the simulation platform needed to train and test the models, and the on-board (embedded) computers needed to power self-driving cars and autonomous robots.
In short, Nvidia is likely to maintain its status as the industry standard in AI infrastructure as the physical AI boom unfolds. That puts the company in front of several large opportunities. Data center GPU sales are projected to grow at 36% annually through 2033, according to Grand View Research.
Meanwhile, robotaxi chip sales are forecast to increase at 74% annually through 2030, according to Grand View Research. And humanoid robot semiconductor sales are forecast to increase at 55% annually through 2045, according to Morgan Stanley.
NASDAQ: NVDA
Key Data Points
Nvidia stock is up 1,150% since January 2023, but the current valuation is still relatively cheap
Nvidia reported impressive financial results in the third quarter, beating estimates on the top and bottom lines. Revenue increased 62% to $57 billion as demand for AI infrastructure continued to exceed expectations, and non-GAAP net income increased 60% to $1.30 per diluted share. Investors have good reason to believe that momentum will continue.
Nvidia will launch the Vera Rubin superchip in the second half of 2026. Like its predecessor Grace Blackwell, the next-generation platform combines CPUs (Vera) with GPUs (Rubin). Importantly, Vera CPUs pack twice the performance of Grace CPUs, while Rubin GPUs run AI training workloads 4x faster and AI inference workloads 5x faster than Blackwell GPUs.
Nvidia has another potential catalyst is the easing of export restrictions. The company for years has basically been locked out of China, the second-largest AI market in the world, but the Trump administration recently approved the export of H200 GPUs. Reuters reports that Beijing blocked H200 imports in January, but it may be a negotiating tactic rather than a permanent condition.
Wall Street estimates Nvidia's adjusted earnings will increase at 48% annually through the fiscal year ending in January 2028. That makes the current valuation of 45 times earnings look relatively cheap. Nvidia shares have added 1,150% since January 2023, but investors still have a compelling opportunity to buy the stock today.
