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Nvidia Stock Cracks $5 Trillion as Trump Says He’ll Talk Chips With China

Oct 29, 2025 06:32:00 -0400 by Adam Clark | #Chips

Nvidia CEO Jensen Huang has built the company into the preferred provider of artificial-intelligence chips. (Photo by PATRICK T. FALLON/AFP via Getty Images)

Key Points

Nvidia was gaining early on Wednesday after notching a new record. A stunning revenue forecast has analysts backing it to keep heading higher.

Nvidia shares were up 3.9% at $208.77 in early trading, giving it a market valuation of more than $5 trillion at the open. The company is the first company to hit the milestone, only 78 trading days since it hit $4 trillion.

Created with Highcharts 9.0.1Nvidia market capSource: FactSetNote: Oct. 29 data is preliminary.

Created with Highcharts 9.0.12021'25012345$6 trillion

The stock rose 5% on Tuesday, closing at a new record high. Nvidia CEO Jensen Huang made a flurry of announcements in a speech at the company’s developer conference, with the biggest surprise being his statement that the company has “visibility” into $500 billion in revenue from its cutting-edge chips through 2026.

On top of that, the market could be more optimistic about Nvidia being allowed to resume chip sales in China. President Donald Trump told reporters he might speak with Chinese leader Xi Jinping about Nvidia’s Blackwell AI processors at the two politicians’ meeting on Thursday, Reuters reported. Huang is expected to attend the South Korea summit where the Trump-Xi meeting will take place.

Wall Street analysts are rushing to update their forecasts in line with Huang’s speech.

Melius Research analyst Ben Reitzes raised his price target on Nvidia stock to $300 from $275, reiterating a Buy rating, in a research note.

Huang’s comment suggests that revenue for each of the next five quarter could be around $5 billion more than current estimates, just based on current orders, according to Reitzes. If a trade deal allowing the resumption of sales to China is struck, that would increase by between $5 billion-$10 billion a quarter.

“We are more confident in the prospects for AI infrastructure
spend on compute/networking to reach around $2 trillion annually by the end of the decade – which presents Nvidia with the possibility to reach over $800 billion in revenue by 2029/2030,” wrote Reitzes.

Demand for AI chips was underlined on Wednesday as South Korea’s SK Hynix , an Nvidia supplier, said it had sold out its entire chip production for the coming year.

William Blair analyst Sebastien Naji said the statement by Huang indicates roughly $435 billion in additional revenue from Nvidia’s Blackwell and Rubin chips over the next six quarters, well ahead of current consensus estimates of nearly $370 billion for data-center revenue over the same period.

“Even with a healthy margin for error, the implication from this latest disclosure by Huang is that consensus numbers for Nvidia are too low,” Naji wrote in a research note.

He noted the shares trade at 30 times his earnings estimate for calendar 2026 and reiterated an Outperform rating.

Write to Adam Clark at adam.clark@barrons.com