We noted in a recent post that NVIDIA appears to have vanquished nearly all of its near-term bearish catalysts, prompting some hedge fund managers based in Boston to ask the rhetorical question: what is keeping the stock from breaking out?
Now, Loop Capital analyst Ananda Baruah has joined this bullish chorus by pegging a street-high price target of $250 on NVIDIA shares, which implies a market capitalization of $6 trillion!
Baruah then cites the math that "just works" to justify his unbridled enthusiasm vis-à-vis NVIDIA. According to Loop Capital's supply chain analyst John Donovan, the spending on GPUs could climb to $2 trillion by 2028, which would be equivalent to between 50 and 60 percent of total installed compute capacity. For context, GPUs account for just 15 percent of the global compute capacity today.
This aligns with NVIDIA's own statement during its Q1'26 earnings call, where it declared that it had visibility into "tens of gigawatts" of AI infrastructure projects. Bear in mind that NVIDIA has already disclosed that it earns between $40 billion and $50 billion in revenue from each GW of new AI infrastructure. According to UBS, assuming a conservative order pipeline of 20GW, this scenario would result in $1 trillion in revenue for NVIDIA.
Coming back, Baruah believes that the upcoming next phase of NVIDIA's growth will be driven by hyperscalers, sovereign AI data centers, generative AI, and AI-based accelerated computing.
Bear in mind that BofA's Vivek Arya is much more circumspect in his outlook for the overall AI market, expecting a global data center TAM of just around $1 trillion by 2030.
As such, Loop Capital now expects NVIDIA to ship 6.5 million GPUs in the ongoing calendar year 2025, and 7.5 million in 2026, replete with an ASP of over $40,000.
On the flip side, Baruah concedes the possibility that NVIDIA might realize these numbers and still not reach the stratospheric $6 trillion valuation, owing to a compression in its 30x P/E, which has been the norm for NVIDIA for the last 36 months or so.
NVIDIA shares are up 3 percent at the time of writing and trading at the $152 price handle. So far this year, however, the stock is up just around 10 percent.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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