500 Billion Reasons to Buy Nvidia Stock Hand Over Fist

Nvidia (NASDAQ: NVDA) may have been the poster child for artificial intelligence (AI) investing in 2023 and 2024, but that notion has been challenged in 2025. Companies like Broadcom and Advanced Micro Devices have announced several key partnerships, particularly with OpenAI, that caused some investors to question whether Nvidia is still the top dog in the industry.

Nvidia struck back on Oct. 28 during its GTC event, when it shared some jaw-dropping projections regarding its AI dominance and order pipeline. Among several key announcements, Nvidia said it has orders for $500 billion in Blackwell and Rubin systems through 2026. That's simply incredible, and it's part of the reason Nvidia's stock soared following this announcement.

Even after this move higher, I still think there's plenty of room to run if the projection turns out to be accurate. Here's why.

Image source: Getty Images.

Nvidia's amazing run is just getting started

Nvidia's graphics processing units (GPUs) are the computing muscle behind most of the artificial intelligence technology that we experience today. These devices have the ability to process multiple calculations at once. Additionally, they can be connected in a cluster to amplify that effect, which is why AI hyperscalers are building massive data centers full of Nvidia GPUs.

We're still in the early innings of deploying large-scale computing power, which is why orders keep coming in for Nvidia's GPUs. This is why Nvidia's $500 billion in orders for its computing systems is a huge deal, as it represents a significant uptick in growth.

In Q2 of its fiscal 2026 (ended July 27), Nvidia's data center division (which includes its Blackwell and Rubin systems) generated $41.1 billion of Nvidia's $46.7 billion total. For Q3, Nvidia expects about $54 billion in revenue. Assuming the same revenue split between data center business and non-data center business for Q3, that would indicate that Q3's data center revenue would be around $48.1 billion.

If Nvidia's data center revenue stayed flat over the next five months, that would only produce $250 billion in sales. So, this $500 billion in sales projection through the end of 2026 would indicate that Nvidia's data center revenue could double, assuming that it has the capacity to meet the orders. Considering data center revenue rose 56% year over year in Q2, that's a huge acceleration and shows that Nvidia is just getting started.

Although Nvidia's stock is up significantly on the news, if this pans out, Nvidia's stock could go much higher.

Nvidia could be worth over $10 trillion by the end of 2026

If we assume that the $500 billion will be divided equally among the five quarters (in reality, the last half of 2026 will have more sales, but this bakes in some conservatism), that would indicate Nvidia could generate $400 billion from data center sales alone. If we add in about $5 billion each quarter for non-data center GPU sales, that would indicate Nvidia would generate around $420 billion in revenue during fiscal 2027 (ending January 2027).

At Nvidia's current 52% profit margin, it would produce earnings of $218 billion. Now, we need to assign an earnings multiple to the stock. Currently, Nvidia trades for nearly 60 times earnings.

NVDA PE Ratio data by YCharts

At 50 times earnings, that translates into a $10.9 trillion company -- more than double from here. Even a more conservative and historically cheap 30 times earnings for the stock would yield a $6.6 trillion company -- more than 20% upside from here. Either way, Nvidia is slated to put up market-crushing returns over the next year if its projections pan out.

I have no reason to doubt Nvidia, and think it's still an excellent stock to buy, even after the recent bump following the announcement.

Keithen Drury has positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.