Prediction: This catalyst will help Nvidia do something no other company has ever done.

In just a few years, Nvidia (NVDA -3.22%) accomplished a lot. The company has gone from being a leading chip supplier to the video game market generating less than $5 billion in annual revenue to becoming a leader in artificial intelligence (AI) chips. This dominance helps Nvidia generate more revenue in a single quarter than it previously generated in an entire year. Revenue soared 94% to a record of more than $35 billion over the past three months.

On top of that, Nvidia has had other victories, like entering the Dow Jones Industrial Average this year and surpassing Apple to become the most valuable company in the world with over $3.5 trillion. Now, what’s next for Nvidia? I predict that a catalyst will help this AI powerhouse do something no other company has ever done.

From video games to artificial intelligence

Before we talk about my prediction, let’s consider Nvidia’s journey so far. As mentioned earlier, Nvidia primarily served the video gaming market with its high-performance graphics processing units (GPUs). But the GPU’s ability to handle multiple tasks at once means it could also be very useful elsewhere; Nvidia’s creation of the parallel computing platform, CUDA, contributed to this transition.

And as the AI ​​boom accelerated, it was clear that Nvidia’s GPUs would play a major role in this high-growth sector. Nvidia has bet everything on AI, not only by adapting its GPUs to the needs of this new technology, but also by providing a wide range of associated products and services. This helped the company take over 80% share of the AI ​​chip market and position itself for victory over time.

Today, Nvidia is the essential source for any actor wishing to develop an AI project. And Nvidia counts the world’s largest technology companies among its main customers – from Metaplatforms has Microsoft. It’s also important to note that Nvidia’s products and services are available on all public clouds, making it easy for customers to access Nvidia’s AI offerings.

All of this has led to triple-digit revenue growth quarter over quarter for the company’s data center business and margins exceeding 70%. So not only does Nvidia win in terms of revenue growth, but also in terms of sales profitability.

Nvidia’s stock performance has reflected that success, with shares soaring 2,600% over the past five years — and this year, they’re headed for a nearly 200% increase.

Nvidia’s market value expected to increase

Now, consider my prediction. I’m saying a catalyst around the corner will help Nvidia do something no other company has ever done. And that’s to reach a market capitalization of $4 trillion.

What is the catalyst? The company launches its new Blackwell architecture and its most efficient chip ever. Nvidia has already sent 13,000 Blackwell GPU samples to its customers. And Microsoft and Oracle recently posted on social media, showing off their new Blackwell powered racks. Nvidia aims to increase production in the current quarter and even generate billions of dollars in revenue from Blackwell during the period.

On top of that, Nvidia spoke of “crazy” demand for Blackwell, with demand outstripping supply. This should boost the company’s growth and please investors, which could gradually push the stock higher.

To reach a market cap of $4 trillion, Nvidia shares would need to rise about 13% to $165, up from about $146 at the market close on Nov. 21. This is an obvious possibility, given the company’s current valuation and its growth prospects. Trading at 50 times forward earnings, Nvidia isn’t cheap, but it’s reasonably priced for a high-growth player, giving it some room to maneuver. Nvidia expects revenue growth of around 70% in the fourth quarter. And analysts expect annual earnings per share growth of 35% over the next five years.

So the high demand for Blackwell – a potentially game-changing platform – along with Nvidia’s current valuation allows this company to do something no other company has done: reach a valuation of $4 trillion. And whether it happens right away or at some point, Nvidia, with its leadership, commitment to innovation, and growth prospects, is a leading AI buy for the long term.