Nvidia stock (NVDA) 1.69%)) It has been affected by several factors, including increased macroeconomic uncertainty, geopolitical tensions, ongoing tariff wars, export controls and increased competition with Chinese companies over the past few months.
However, recent revenue performance, including the most recent impressive results for the first quarter of 2026, shows why investors shouldn’t short-term noise divert them from the company’s long-term growth outlook.
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Nvidia’s first quarter, 2026 revenue performance (ends April 27th) examines its position as a clear leader in the AI-powered hardware, software and infrastructure services market. Revenues rose 69% year-on-year to $44.1 billion, while data center revenue rose 73% year-on-year to $39.1 billion in the first quarter.
These tailwinds can drive Nvidia’s market value to more than $5 trillion over the next decade.
AI Hardware Leadership
Nvidia’s dominance in the AI chip market is still managing more than 80% share, so it should still exist for at least the next few years. The company’s latest Grace Blackwell 200 (GB200) Graphics Processing Unit (GPU) allows organizations to perform 25 times better performance and run computationally heavy inference AI models at 20 times the cost of a Hopper H100 chip.
Blackwell’s ramp-up is the fastest product launch in Nvidia’s history, accounting for almost 70% of data center calculation revenue in recent quarters. The major hyperscalers already deploy nearly 72,000 Blackwell GPUs per week across the data center, and are planning to generate more lamp output this quarter.
Additionally, Nvidia is sampling GB300 systems at its major cloud service providers and expects production cargo to begin by the end of the second quarter. These systems have the same architecture, physical footprint, and mechanical and electrical specifications as the GB200, but with a 50% increase in high bandwidth memory capacity and inferential computing performance. Therefore, cloud service providers can migrate from GB200 to GB300 systems, while benefiting from higher performance
Software Ecosystem
Nvidia’s software ecosystem will also become a powerful moat, ensuring that it is prohibitively expensive for customers to switch to chips from competitors. The company’s comprehensive CUDA parallel programming platform is currently being used by 5.9 million developers to effectively accelerate GPUs for a variety of general purpose applications. CUDA is currently used to accelerate all AI models and over 4,400 applications. CUDA will then help prevent significant infrastructure investments from becoming obsolete in a very rapidly evolving market.
Additionally, the company launched the Tensortort software package for inference (real-time deployment of trained AI models) optimization and Tensort-LLM software library to ensure the rapid and efficient execution of large language models.
Strategic Partnerships
Nvidia partnered with Humain, a newly launched AI company owned by Saudi Arabia’s public investment fund, to build an AI factory with 18,000 units of the latest GB300 Blackwell chips in its first deployment phase. Nvidia also plays an important role in the Stargate project. This will allow Openai, Softbank and Oracle to invest $500 billion in US-based AI infrastructure over the next four years.
These strategic alliances could be a key growth catalyst for Nvidia in the long run.
How will Nvidia reach a $5 trillion valuation by 2035?
In fiscal year 2025, which ended January 26th, chipmakers’ revenues rose 114% to $130.5 billion. Analysts predict future revenue growth is low, but the consensus expectation is that the company will grow rapidly. Nvidia’s revenue is projected to increase by 52.8% and 23.9% for fiscal year 2026 and 2027, respectively. The company is already off to a good start by recording revenue growth of 69% in the first quarter of fiscal year 2026.
In that context, it is reasonable to expect Nvidia to grow at a combined annual rate of nearly 20% over the next decade. If so, it would generate around $88 billion in revenue for fiscal year 2035.
Nvidia reported a very high net profit margin of 55.8% in 2025. The margins have been steadily expanded over the past few years, primarily due to dominance in the AI market. Even assuming we need to accept margin contractions due to increased competition and size, it is reasonable to expect a net profit margin of nearly 27.9% (median 10-year margin) to be $88 billion in fiscal year 2035.
Nvidia is trading at approximately 32.6 times the advance revenue. Analysts predict Nvidia’s P/E multiple of 23.5x five years ago. Assuming this valuation is a multiple over the next decade, the company could reach a market value of $5.29 trillion by 2035.
Therefore, the company is well positioned to surpass its $5 trillion market capitalization, even under conservative expectations. There is reason to suspect that the market value will also increase. Consider Nvidia’s upcoming AI initiatives, including Sovereign AI, Agent AI, and Physical AI.
Other growth catalysts
Nvidia also benefits from increasing demand for high-performance chips for gaming and AI PCs. The strong adoption of the Blackwell architecture system from gamers, creators and AI enthusiasts led to gaming revenues rising 42% year-on-year to $3.8 billion in the first quarter.
Enterprise AI is also becoming an important growth catalyst, with Nvidia bringing AI-powered storage, computing and networking capabilities directly into the enterprise environment. The company’s RTX Pro, DGX Spark, and DGX Station Enterprise AI Systems target $500 billion in market opportunities. Nvidia’s Omniverse and Robotics platforms also power factory automation and humanoid robotic systems.
With all this in mind, long-term investors should consider acquiring at least a small interest in Nvidia in order to benefit from AI waves over the next decade.
