Nvidia’s market capitalization has climbed from roughly $345 billion at the launch of ChatGPT in November 2022 to $4.5 trillion today, underpinning a tenfold increase in three years. Analysts at FactSet and Goldman Sachs project that AI hyperscalers—including Microsoft, Alphabet, Meta Platforms, Amazon and OpenAI—could invest up to $527 billion in AI infrastructure capex this year. With Nvidia capturing an estimated 60% of hyperscaler spending on GPUs, Wall Street foresees the company nearly doubling its data center revenue to between $320 billion and $330 billion in 2026. If these projections hold and valuation multiples remain in the 21–27× data-center-sales range, Nvidia’s market cap could reach $7 trillion to $9 trillion by year-end 2026, implying approximately 70% upside from current levels.

Nvidia’s backlog, which CEO Jensen Huang estimated near $500 billion, continues to expand as hyperscalers lock in multiyear agreements. CFO Colette Kress highlighted exponential backlog growth, driven by marquee deals such as a multibillion-dollar agreement to supply new Vera Rubin chips to Anthropic, AWS’s $38 billion arrangement to host OpenAI’s GPU clusters, and a $20 billion licensing deal with Groq. These contracts not only secure multiyear revenue visibility but also reinforce Nvidia’s dominance in training and inference markets, underpinning further growth in data center unit shipments and associated software-defined networking and interconnect solutions.

Despite Nvidia’s strong growth—data center revenue has climbed from $167 billion over the past 12 months—its forward price-to-sales multiple has compressed to roughly 21×, down from all-time highs above 40×. This compression reflects the market’s shift toward valuing Nvidia more like a mature infrastructure provider rather than a hypergrowth story. However, as revenue and profits continue to scale with each new hyperscaler deal, and as gross margins stabilize near 70%, investors may re-rate the stock higher. Even modest multiple expansion back toward historical mid-cycle levels could significantly amplify returns, supporting the view that further upside remains despite today’s already lofty valuation.