Wall Street Analyst Sees Nvidia (NVDA) on Track for $3-4 Trillion TAM by 2030

NVIDIA Corporation (NASDAQ:NVDA) is one of the Buzzing AI Stocks on Wall Street. On September 23, UBS analyst Timothy Arcuri reiterated a Buy rating on the stock with a $205.00 price target. The rating affirmation follows Nvidia’s $100 billion investment in OpenAI and the signifant revenue potential that it offers.

UBS believes that the partnership has the potential to generate approximately $400 billion in revenue for Nvidia over multiple years. However, the timing will largely depend on OpenAI’s implementation plans.

The deal will also allow Nvidia to accomplish its previously outlined growth trajectory toward a $3-4 trillion total addressable market by 2030. Historically, it has managed to capture about 30-35% share.

The firm further elaborated how the partnership is helpful in reinforcing Nvidia’s dominance, demonstrates some risk for Broadcom, and is mostly negative for AMD.

“While timing will, to a large degree, depend on OpenAI’s ramp plan, we estimate this deal ultimately translates into ~$400B of NVDA revenue over a multi-year period. Given the sheer size of the numbers, it does seem likely there could be some overlap with Oracle’s capacity allocated to OpenAI, but our conversation with management suggested this is largely incremental. For NVDA, this helps to flesh out multi-year visibility to the substantial growth headroom it laid out last earnings call when it highlighted a $3-4T TAM by 2030 (of which NVDA’s share has been ~30-35%) and we believe it was OpenAI approaching NVDA for help rather than any sort of vendor financing effort on the part of NVDA. As for AVGO, this could ultimately impact the size of its ASIC revenue from OpenAI, but we have seen no signs of any weakening in what we believe to ultimately be a volume target bigger than what Google does with AVGO. Ultimately, this feels the most negative for AMD as it solidifies NVDA’s market dominance.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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