CEO Jensen Huang Just Delivered Fantastic News for Nvidia Investors

Nvidia (NVDA +0.60%) made headlines at its GTC event that was held on Oct. 28. There were several bombshell announcements ranging from government contracts to quantum computing to new technology. However, I think the biggest announcement centers around the massive growth Nvidia expects to see manifest by the end of 2026.

CEO Jensen Huang announced that Nvidia has $500 billion in orders through the end of 2026 for its Blackwell and Rubin graphics processing units (GPUs). That’s monster growth, and far exceeds analysts’ projections over the next year. This has the potential to ignite a massive rally in the stock because if this projection pans out, Nvidia’s stock could more than double by the end of 2026.

Nvidia’s dominance is becoming clearer

Up until a few weeks ago, Nvidia’s dominance in the artificial intelligence (AI) space was unquestioned. However, that dominance came into question when OpenAI, the maker of ChatGPT, announced several deals with competitors, like Advanced Micro Devices (AMD 1.47%) and Broadcom (AVGO +0.69%). While Nvidia also announced its own deal with OpenAI, investors were concerned that Nvidia could be losing its touch.

However, CEO and founder Jensen Huang put those worries to rest at the company’s GTC event.

Nvidia’s $500 billion in orders for its cutting-edge chips was an absolute bombshell of an announcement. While that includes five quarters’ worth of sales, Wall Street analysts were only expecting $277 billion in revenue for Nvidia during fiscal year 2027 (ending January 2027).

Another huge revelation was President Donald Trump’s announcement that China will soon be able to buy some of Nvidia’s chips, just not its most advanced ones. Nvidia’s market share in China is currently zero due to its export license being revoked earlier this year. Although Nvidia has applied for another license, it has yet to be granted.

With Trump likely granting China access to some chips as a concession during trade talks, this could open up even more sales during fiscal year 2027 that aren’t currently accounted for. This would be another massive catalyst for Nvidia’s stock, but even if this doesn’t come to fruition, Nvidia will be a fantastic investment.

Nvidia has the potential to cross a $10 trillion market cap by the end of next year

If Nvidia can deliver on its $500 billion in orders by the end of 2026, that would mark a massive uptick in growth. If we assume that the $500 billion in sales is distributed in five separate quarters (a bad assumption, but it bakes a bit of conservatism into the prediction), that means Nvidia would generate $400 billion in annual sales from its Blackwell and Rubin chips. If we add in $5 billion each quarter for non-data center revenue streams — which matches what Nvidia posted in its second quarter of fiscal 2026 — that equates to $420 billion in revenue for fiscal 2027.

At Nvidia’s current 52% profit margin, that comes out to $218 billion in profits. Right now, Nvidia’s stock trades for 57 times trailing earnings. At a slightly more conservative 50 times earnings valuation, that would price Nvidia’s stock at $10.9 trillion by the end of fiscal 2027. With Nvidia’s market cap hovering around the $5 trillion level, that equates to a doubling in a little over a year’s time.

Remember, that’s with some conservatism baked into the projection and zero in China sales. All of that could factor into further sales, making Nvidia one of the best stocks to buy in the market today. Nvidia has proven its dominance once again, and investors can be rewarded with incredible gains by buying the stock today, even after its pop following the event.