Nvidia Corp (NASDAQ:NVDA, ETR:NVD) surged 2.9% on Tuesday to close at $141.40, pushing its market capitalization to $3.44 trillion and vaulting past Microsoft to become the world’s most valuable publicly traded company.
The milestone caps a record-setting year for Nvidia, driven by insatiable demand for its AI chips and growing confidence in the company’s long-term growth trajectory.
Analysts at UBS pointed to Nvidia’s expanding pipeline of AI infrastructure projects as a key reason for investor optimism.
“The company noted it has visibility into ‘tens of gigawatts’ of AI infrastructure projects in the not too distant future,” the firm said in a note. UBS estimates this could represent a minimum revenue opportunity of around $1 trillion over the next two or three years, implying potential annual data center revenue of about $400 billion—double its current forecast for 2026.
UBS also addressed confusion stemming from Nvidia’s recent earnings call, where the company cited that hyperscalers are deploying nearly 1,000 NVL72 racks (about 72,000 Blackwell GPUs) per week. “We believe the company meant this to be more illustrative than quantitative,” UBS noted, emphasizing that the numbers were intended to highlight resolved supply issues and accelerating shipments.
In addition, analysts highlighted strong growth in networking revenue—up 64% quarter-over-quarter to approximately $5 billion—largely driven by sales of NVLink-enabled rack-scale systems. Gaming revenue also rebounded, up nearly 50% from the prior quarter, driven primarily by gamers rather than AI-related demand, according to the firm.
“Investor concerns around growth sustainability should be allayed by some of this commentary,” UBS said, underscoring Nvidia’s widening lead in the AI arms race.