This bold forecast reflects the company's continuous technological advancements and expansion into the automotive sector.

Kindig's thesis revolves around Nvidia's accelerated release schedule for its graphic processing unit (GPU), with new iterations hitting the market annually instead of every two years. This rapid pace of innovation places the company's cutting-edge technology in direct competition with its own older products, ensuring continuous growth.

Another key driver of Nvidia's future success is its newly launched Blackwell platform. Kindig anticipates that Blackwell will bolster the company's annual sales in the data center segment from $100 billion to $200 billion by the end of fiscal 2026. Furthermore, she predicts that Nvidia will maintain its stronghold in the artificial intelligence (AI) data center market, which she expects to reach $400 billion by 2027 and a staggering $1 trillion by 2030.

Additionally, Kindig sees tremendous growth potential for Nvidia in the automotive market. While the segment is currently small, she believes it presents a $300 billion opportunity that will begin to materialize within the next two to five years. Nvidia's strong position in the market, bolstered by its CUDA software platform which is essential for programming GPUs, provides a significant advantage, as it helps to secure customer loyalty.

To achieve a revenue of $400 billion by 2027, Nvidia would need to maintain an annual growth rate of approximately 50% from 2025 to 2027. This growth trajectory would further lead the company to a revenue of $1 trillion by 2030, with a projected annual growth rate of 35% from 2028 to 2030.

Considering an average increase of 13% in quarterly adjusted operating expenses until 2030 and a 20% tax rate on operating income, Nvidia could potentially generate around $450 billion in adjusted earnings by 2030. With a market capitalization of $10 trillion, the stock would have a price-to-earnings ratio of only 22 times, indicating its potential undervaluation.

Although these assumptions rely on robust growth estimates, they are not far-fetched considering Nvidia's recent revenue growth and dominant position in the GPU market. However, the company's ability to meet demand and expand production capacity, particularly in partnership with semiconductor manufacturing companies like Taiwan Semiconductor Manufacturing, will play a crucial role in determining how high its market cap can soar.

As Nvidia continues to launch new GPU platforms and stays at the forefront of innovation, it is well-positioned to command pricing power in the semiconductor industry. Despite the potential risks associated with fluctuations in demand, if the AI sector remains in its early stages and demand continues to flourish, the sky's the limit for Nvidia.

It is worth noting that Geoffrey Seiler has no position in any of the stocks mentioned, while The Motley Fool holds positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing.