Nvidia‘s (NASDAQ: NVDA) information heart enterprise has been the corporate’s major development driver prior to now three years, catapulting it to a market cap of $4.46 trillion as of this writing. This isn’t shocking, as Nvidia’s information heart income has merely taken off because of the booming demand for its graphics processing models (GPUs) that prepare AI fashions and assist run inference functions.
This explains why Nvidia’s information heart income has shot up from $15 billion in fiscal 2023 (which resulted in January 2023) to an estimated $192 billion within the ongoing fiscal yr 2026 (which can finish subsequent month). Traders can anticipate Nvidia’s information heart income to develop by an enormous margin within the coming years, because of AI infrastructure investments.
Nonetheless, there’s one other potential catalyst that buyers could also be lacking. This explicit development driver might add a formidable $350 billion to Nvidia’s market cap in the long term. In truth, this enterprise was the corporate’s bread and butter for a very long time earlier than being overshadowed by the info heart section.
Let’s take a more in-depth have a look at this chance and test why it has the potential to provide Nvidia inventory a stable enhance.
Picture supply: Nvidia.
Gaming was Nvidia’s largest income simply 4 years in the past. Nonetheless, it accounted for simply 7.5% of the corporate’s high line within the third quarter of fiscal 2026 (which ended on Oct. 26). Nvidia’s gaming section contributed slightly below $15 billion to the corporate’s high line prior to now 4 quarters. The corporate’s total trailing-12-month (TTM) income stands at $187 billion.
The info heart enterprise now does the heavy lifting for Nvidia. Traders, nevertheless, should not low cost the potential that the gaming section gives. In spite of everything, Nvidia holds a monopoly-like place out there for discrete GPUs. Market analysis firm Jon Peddie Analysis factors out that its share of this area was 94% in 2025’s Q2.
This terrific market share is the rationale why Nvidia’s gaming and AI private laptop (PC) enterprise has been rising at a brisk tempo. Its gaming income elevated by 30% yr over yr within the earlier quarter. The corporate can maintain such momentum in the long term as nicely. That is as a result of the gaming GPU market might clock an annual development charge of virtually 39% by means of 2034, based on a third-party analysis report.
The market measurement might attain $145 billion by the top of the forecast interval. This, nevertheless, is not the one alternative for Nvidia’s discrete PC GPUs. The demand for AI PCs is predicted to develop at an annual charge of 29% by means of 2033. These PCs require discrete GPUs to course of AI workloads regionally, increasing Nvidia’s addressable market within the course of. So, Nvidia’s addressable alternative in gaming and AI PCs may very well be a lot bigger than the $145 billion third-party estimate.
In consequence, Nvidia can maintain stable development ranges on this enterprise in the long term, which might give its market cap a pleasant enhance.
Nvidia administration identified three years in the past that it sees a $100 billion addressable market in gaming. As identified above, that chance is now a lot greater, pushed by catalysts reminiscent of AI. That is why I’ll assume that Nvidia’s 30% development charge within the gaming and AI PC enterprise, which it reported final quarter, will probably be sustainable in the long term.
Assuming it may possibly preserve this 30% development charge for the subsequent 5 years, Nvidia’s gaming and AI PC income might soar to $56 billion (based mostly on the $15 billion trailing-12-month income of this section). Multiplying that by the U.S. expertise sector’s common price-to-sales (P/S) ratio of 8.4 means that the gaming and AI PC enterprise’ price may very well be $468 billion.
Making use of the identical a number of to the section’s TTM income of $15 billion means that the gaming and AI PC enterprise is now valued at $126 billion. So, the potential development alternative in gaming and AI PCs might add nearly $350 billion to Nvidia’s market cap over the subsequent 5 years, giving buyers one other stable purpose to purchase this AI inventory.
Before you purchase inventory in Nvidia, contemplate this:
The Motley Idiot Inventory Advisor analyst workforce simply recognized what they imagine are the 10 greatest shares for buyers to purchase now… and Nvidia wasn’t one in every of them. The ten shares that made the reduce might produce monster returns within the coming years.
Take into account when Netflix made this record on December 17, 2004… should you invested $1,000 on the time of our advice, you’d have $540,587!* Or when Nvidia made this record on April 15, 2005… should you invested $1,000 on the time of our advice, you’d have $1,118,210!*
Now, it’s price noting Inventory Advisor’s complete common return is 991% — a market-crushing outperformance in comparison with 195% for the S&P 500. Do not miss the newest high 10 record, out there with Inventory Advisor, and be a part of an investing group constructed by particular person buyers for particular person buyers.
Harsh Chauhan has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Nvidia. The Motley Idiot has a disclosure coverage.
