Nvidia’s $6 Trillion Dream: Why One Analyst Believes the AI Giant’s Rally Has Just Begun

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Loop Capital estimates that hyperscalers will boost the proportion of infrastructure spending on non-CPU compute from 15 per cent today to 50–60 per cent by 2028.

Nvidia is back on top as the world’s most valuable listed company, but analysts at Loop Capital say the AI chipmaker’s rally is far from over. With its shares reaching a record $154.31 on Wednesday and rising again on Thursday to $155, Nvidia’s market value has climbed to $3.77 trillion. Yet, analyst Ananda Baruah believes the company could go much further — potentially hitting a valuation of $6 trillion.

Baruah, Loop Capital’s managing director, has set Wall Street’s most bullish price target for Nvidia at $250 per share. That’s a 127 per cent upside from current levels, implying Nvidia could nearly double in value again and still have room to grow. “The math just works,” Baruah insisted, arguing that Nvidia is entering what he calls a “Golden Wave” of generative AI adoption.

AI Compute Demand Set to Explode

At the centre of this projection is a rapid expansion in AI infrastructure spending. Companies such as Amazon, Microsoft, and other hyperscalers are expected to dramatically increase their investment in AI data centres — particularly for non-CPU compute, like GPUs and AI accelerators, where Nvidia dominates.

Loop Capital estimates that hyperscalers will boost the proportion of infrastructure spending on non-CPU compute from 15 per cent today to 50–60 per cent by 2028. That would push global spending on AI compute to around $2 trillion in just three years.

Much of this surge is driven by the rising complexity of AI models. Newer-generation reasoning models reportedly require up to 150 times more compute power than conventional large language models (LLMs), making Nvidia’s AI servers even more critical.

Nvidia’s AI Factories Are Gigawatt Machines

Nvidia is also banking on its role in the development of AI factories — vertically integrated data centres designed to train and deploy artificial intelligence models at scale. The firm says it now sees “line of sight” to tens of gigawatts of demand in the coming 24–36 months.

According to CEO Jensen Huang, each gigawatt of demand equates to $40–50 billion in revenue for Nvidia. That would translate to as much as $900 billion in forward-looking sales — nearly eight times its data centre revenue today.

Loop Capital projects Nvidia’s data centre revenue will grow from $115 billion in FY2025 to $367 billion by FY2028, more than tripling in three years.

Nvidia’s Monopoly-Like Grip on the Market

Baruah’s optimism also stems from Nvidia’s near-monopoly on the most critical AI compute hardware. He describes the company as “essentially a monopoly for critical tech”, giving it a major advantage in pricing power and the ability to expand margins.

Despite competitive rumblings from rivals such as AMD and Intel — and the emergence of China’s DeepSeek AI earlier this year — Nvidia has weathered those headwinds. It even navigated US export restrictions and tariff concerns with minimal long-term impact, showing the robustness of its business model.

Investors Already Betting on the Future

Nvidia’s stock price has climbed more than 180 per cent over the past 12 months, and with its recent gains, it has surpassed Microsoft and Apple to top global market cap rankings. While some investors are cautious about overheating, Baruah’s analysis is a stark reminder of how bullish sentiment remains around the AI megatrend. “We’re entering the next ‘Golden Wave’ of Gen AI adoption,” he wrote. “Nvidia is at the front-end of another material leg of stronger-than-anticipated demand.”

If his thesis plays out, Nvidia could soon redefine the upper limits of tech valuation — cementing itself not just as an AI leader, but as a financial juggernaut in the trillion-dollar club.