NVIDIA already holds the crown as the world's most valuable company, and now investment bank Raymond James believes it can reach another almost unfathomable milestone: $1 trillion in annual sales.

Analyst Simon Leopold raised his price target on the stock by 46% to $515 from $352 following Wednesday's earnings report, stating that "achieving $1 trillion in sales by fiscal 2029 seems possible." The chipmaker reported second-quarter revenue of $96.2 billion, while the consensus analyst estimate for fiscal 2029 revenue, as surveyed by FactSet, sits just below $750 billion. This implies Wall Street may still be underestimating the company by roughly $250 billion compared to Leopold's projection.

Why $1 Trillion Suddenly Looks Achievable

NVIDIA projects revenue growth of about 70% for fiscal 2028, outpacing Wall Street's earlier expectations. That would push annual sales to approximately $690 billion to $700 billion. At that trajectory, the $1 trillion target is not as far-fetched as it sounds. The company would only need to grow another 43% to 45% in fiscal 2029 to hit the mark.

Leopold's view is that demand is not the issue. NVIDIA CEO Jensen Huang told analysts that customer demand for computing power far exceeds the company's current supply capability, making supply the primary constraint on growth. Leopold did not detail how NVIDIA would close the supply gap. The company indicated that capacity and manufacturing yields are expected to improve, and its 70% growth guidance for fiscal 2028 reflects the supply levels it is confident it can achieve.

NVIDIA may not need hardware capacity to expand in lockstep to sustain rapid revenue growth. As the proportion of full AI system product sales rises, the revenue per gigawatt of computing power is expected to climb from roughly $25 billion in the Blackwell architecture era to $40 billion under the Vera Rubin architecture. Leopold's $1 trillion revenue forecast may also leave room for upside surprises. If supply improves faster than anticipated, the substantial unmet demand could convert into revenue, pushing results beyond current company guidance.

Prediction market traders are bullish on NVIDIA maintaining its strength. On the Polymarket platform, a $6.3 million market shows that the probability of NVIDIA being the world's most valuable company by the end of 2026 stands at approximately 79%, with Apple at 13% and Google at 9%.

For Leopold's projection to materialize, AI spending must remain at extremely elevated levels, global supply chains need to keep expanding capacity, and future Vera Rubin architecture products must fend off competition from custom chips to protect NVIDIA's profitability advantage. Huang's core message on the earnings call was that AI can now produce outputs with real value that generate profits, meaning more computing power invested translates into more revenue generated. The entire thesis rests on this assumption.