Nvidia stock reached $243.37 in intraday trading Tuesday, marking its fifth consecutive day of gains and pushing the chipmaker's market cap to $5.8 trillion—the largest in the world.
The rally reflects two converging tailwinds: a cooler-than-expected Personal Consumption Expenditures inflation report and weak employment data have reduced the odds of future Federal Reserve rate hikes, lifting growth stocks. Simultaneously, AI sentiment remains white-hot. Anthropic is preparing for an initial public offering next month valued at $2 trillion, signaling sustained institutional appetite for AI assets.
Nvidia's competitive moat is widening. Marvell Technology raised its 2028 revenue outlook to $20 billion, underscoring sustained chip demand. Nvidia already delivers results while rivals like AMD (166x earnings), Intel (103x adjusted earnings), and Broadcom (48x earnings) trade at multiples that price in future potential rather than current execution.
Nvidia's valuation tells the story. At 30x trailing earnings, the stock appears expensive until you look forward. Wall Street expects fiscal 2028 revenue to reach $687 billion—a 67 percent jump—with adjusted EPS of $15.80. On those 2028 numbers, Nvidia trades at just 15x earnings, a discount to its historical average and a fraction of what the market pays for inferior growth profiles.
The bull case has real limits. Nvidia is now 20 percent more valuable than Apple. A $10 trillion valuation—a 72 percent gain—would be less than half its prior multi-year returns. The company also faces existential competition: Amazon and Google are building proprietary chips to reduce AI inference costs, potentially eroding Nvidia's moat in data centers.
TipRanks analysts see 39 percent upside from current levels. For long-term holders, the key question is whether Nvidia can defend market share and sustain 67 percent revenue growth as it scales. The answer will determine whether today's 15x multiple on 2028 earnings proves prescient or aggressive.
