Wall Street analysts have identified Nvidia as the top trillion-dollar stock to purchase currently, based on average target prices collected from LSEG on January 14. The average target of $254 per share implies a 40% upside from its current price of $182.
Among ten U.S.-listed companies with market capitalizations of at least $1 trillion, Nvidia leads in projected upside. Broadcom follows with a 37% upside implied by its $459 average target, while Meta Platforms and Microsoft show 35% and 34% upside respectively. Amazon, Apple, and Berkshire Hathaway have smaller upside potentials, and Alphabet, Taiwan Semiconductor, and Tesla face downside according to analyst targets.
Analysts generally view Tesla as the worst trillion-dollar stock to buy right now. The consensus suggests Nvidia is the best choice, with Broadcom a close second.
Nvidia reported third-quarter revenue of $57 billion, a 62% increase, with non-GAAP net income rising 60% to $1.30 per diluted share. The company's stock has advanced 1,150% since January 2023.
Nvidia dominates the data center GPU market with nearly 90% share. Its full-stack strategy combines GPUs with CPUs, networking gear, and the CUDA software ecosystem. Demand for generative AI has driven growth, as the company supplies hardware, software, and developer tools for AI workloads.
The company also has opportunities in physical AI, including self-driving cars and autonomous robots. It provides data center hardware, simulation platforms, and embedded computers for these applications. Data center GPU sales are projected to grow 36% annually through 2033, according to Grand View Research.
Robotaxi chip sales are forecast to increase 74% annually through 2030, and humanoid robot semiconductor sales are expected to rise 55% annually through 2045, per Morgan Stanley.
Nvidia plans to launch the Vera Rubin superchip in the second half of 2026. The platform combines Vera CPUs with Rubin GPUs, offering twice the CPU performance and 4-5 times faster AI training and inference than previous models.
Export restrictions may ease, as the Trump administration recently approved H200 GPU exports to China. Reuters reported Beijing blocked H200 imports in January, but this may be temporary.
Wall Street estimates Nvidia's adjusted earnings will grow 48% annually through fiscal year ending January 2028. The current valuation of 45 times earnings is considered relatively cheap given this growth.
The Motley Fool Stock Advisor team identified 10 stocks they believe are better buys than Nvidia. Their service has a total average return of 952%, outperforming the S&P 500's 195% return.