Nvidia riding on the artificial intelligence wave, made a historic accomplishment on October 29 as the first company to reach $5 trillion in market value.
“Nvidia hitting a $5 trillion market cap is more than a milestone; it’s a statement, as Nvidia has gone from chip maker to industry creator,” Matt Britzman, senior equity analyst at Hargreaves Lansdown, which holds shares in the company, told Reuters.
The company made another important achievement on October 17, when it presented the first U.S.-made Blackwell wafer, produced at TSMC’s semiconductor manufacturing facility in Phoenix, Arizona.
The company held its three-day GTC conference at Washington, D.C. from October 27 to 29, where it made many new AI-related announcements.
Bank of America analyst Vivek Arya and his team hosted a meeting with Nvidia (NVDA) CFO Colette Kress following the CEO keynote, at NVDA’s GTC trade show in Washington, D.C.
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Solid visibility
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Strong alignment with supply chain including multiple memory supplier
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Zero China expectations
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Confidence in maintaining leadership against ASIC and GPU rivals
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Multi-year pipeline that continues to drive leverage in new markets
The team believes Nvidia can continue to maintain its strong mid-70s gross margins on the strength of its products, and as it has strong co-design and volume support from multiple memory suppliers.
In a research note shared with TheStreet, Arya reiterated a buy rating and raised the target price from $235 to $275, based on 44 multiple his estimate for price-to-earnings ratio excluding cash for calendar year 2026, which is within Nvidia’s historical forward-year price-to-earnings range of 25 to 56.
He concluded by saying that the multiple is “justified by [Nvidia]’s leading share in fast-growing AI compute/networking markets, offset by lumpiness in global AI projects, cyclical gaming market, and concerns around access to power.”
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Weakness in consumer driven gaming market
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Competition with major public firms
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Larger-than-expected impact from restrictions on compute shipments to China
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Lumpy and unpredictable sales in new enterprise, data center, and auto markets
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Potential for decelerating capital returns
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Enhanced government scrutiny of Nvidia’s dominant market position in AI chips
Nvidia and Nokia entered into a strategic partnership to add Nvidia-powered, commercial-grade AI-RAN products to Nokia’s RAN portfolio, enabling communication service providers to launch AI-native 5G-Advanced and 6G networks on Nvidia platforms.
