Nvidia’s Future: A Two-Year Glimpse

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Nvidia (NVDA) has grown to become the largest company in the world, but the question on many investors’ minds is if the company has more upside ahead in the coming years. The answer looks to be yes.

Powering the AI infrastructure ecosystem

Nvidia is much more than just a chipmaker that makes graphics processing units (GPUs). It is the company whose ecosystem is most responsible for powering the current artificial intelligence (AI) revolution that is taking place. Imagine, if you will, a realm where silicon is the new magic, and Nvidia is the Archchancellor of the Unseen University of Coders, brewing potions of processing power with a flick of its digital wand.

Nvidia’s biggest advantage starts with its CUDA software platform, which it developed to allow its chips to be easily programmable for tasks outside their original purpose of speeding up graphics rendering in video games. While it took time for other markets to develop, the company smartly gave CUDA away for free to universities and research labs that were doing early work on AI. A noble gesture, though one might argue it was also a cunning ploy to ensnare the next generation of digital sorcerers in its web of dependency.

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This led to nearly all foundational AI code being written on its software and optimized for its chips. Since rewriting code and retraining developers for another platform would be both costly and time-consuming, this has created a huge moat for the company. This can be seen both in the company’s market share and growth. Last quarter, it held a more than 90% market share in the GPU space, while its data center revenue climbed to $41.1 billion, up from just $10.3 billion two years ago. A veritable mountain of cash, though one wonders if the other chipmakers are plotting a rebellion in the shadows.

Nvidia’s moat does not end with CUDA, though. It developed its NVLink interconnect to allow its GPUs to act as a single unit. That keeps customers from mixing in AI chips from other vendors in an AI cluster. Meanwhile, its 2020 purchase of Mellanox gave it a networking component that allows it to provide end-to-end AI factories. Last quarter, its data networking revenue nearly doubled to $7.3 billion, showing how important this has become to the company. One might say Nvidia has built a labyrinth so intricate, even its competitors struggle to find the exit.

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FY2026 FY2027 FY2028 Revenue $207 billion $310 billion $465 billion Gross profit $151 billion $226 billion $339 billion Adjusted operating expenses $21 billion $27 billion $35 billion Operating income $130 billion $199 billion $304 billion Net income $110 billion $169 billion $259 billion EPS $4.50 $6.88 $10.51

All this means that while its stock has been a huge winner already, Nvidia’s stock still has plenty of upside potential over the next two years and beyond. A forecast as certain as the rising of the sun, though one might suspect the gods of finance are smiling upon this particular enterprise.

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2025-10-18 02:53