Last week, Bitcoin (BTCUSD) topped the $100,000 threshold for the first time ever, sending social media into a frenzy. The world’s largest cryptocurrency has since pulled back from its new all-time highs but continues to dominate global headlines while commanding a market capitalization near $2 trillion. Historically, the Bitcoin bull run ends roughly 18 months after the halving event which last took place in April 2024.
This means that most analysts believe that Bitcoin prices will continue to surge over the next 11 months, driven by the widespread adoption of digital assets and a crypto-friendly environment under President-elect Donald Trump's administration. Given these factors, does it make sense to own (NVDA)stock now? Nvidia is a high-flying tech stock that historically has had exposure to the crypto market.
The BTC Connection: Nvidia’s GPUs Are Used to Mine Bitcoin
Mining Bitcoin requires powerful computers to complete complex mathematical problems. This means that miners rely on high-end graphics processing units (GPUs) due to their processing capabilities. Nvidia is the leading manufacturer of GPUs, making it a top stock to own when BTC prices are elevated.
Demand for Nvidia’s GPUs surged significantly during the last Bitcoin boom, and the same can be expected in this bull run. However, investors should note that Nvidia primarily functions as an artificial intelligence play in 2024, given that it generates most of its sales from this segment.
Nvidia’s cryptocurrency sales are included in its gaming segment, which has reported sales of $11.67 billion in the last 12 months, up from $10.44 billion in fiscal 2024 (which ended in January) and $9.06 billion in fiscal 2023.
While Bitcoin prices have more than doubled in the past year, its gaming sales rose just slightly by $3.3 billion in the fiscal third quarter (ended in October), up from $2.8 billion in the year-ago period. Its data center sales clocked in above $30 billion for the quarter.
Is Nvidia a Good Stock to Own Right Now?
Valued at a market cap of $3.4 trillion, Nvidia is at the epicenter of the artificial intelligence (AI) megatrend. Big tech companies, including Microsoft (MSFT), Meta Platforms (META), Amazon (AMZN), and Alphabet (GOOG) (GOOGL) are investing billions of dollars in data centers to run and train generative AI platforms such as ChatGPT, Claude, and Gemini. Here too, Nvidia’s GPUs are used to power data centers where it commands a market share of over 90%, according to certain reports.
Nvidia’s data center revenue stood at $30.77 billion in fiscal Q3 2025, up from the $15 billion it generated in the whole of fiscal 2023 and less than $3 billion in 2020. The demand for GPUs to train next-generation AI models will rise exponentially, which suggests Nvidia’s growth story is far from over.
Nvidia’s enviable market share has allowed it to enjoy a wide competitive moat and benefit from pricing power. Its gross margins in the last 12 months have risen to 75.9%, up from 55.5% in fiscal 2015 and 56.9% in 2023.
Is Nvidia Stock Overvalued?
Analysts tracking Nvidia expect its revenue to rise from $60.9 billion in fiscal 2024 to nearly $240 billion in 2027. Notably, its free cash flow is projected to increase from $27 billion in 2024 to $125 billion in 2027.
Today, Nvidia stock is priced at 128x trailing FCF. If the chip stock's trailing FCF dips to 50x, Nvidia might trade at a market cap of over $6 trillion in early 2027, indicating upside potential of more than 60% from current levels.
Out of the 43 analysts covering NVDA stock, 36 recommend “Strong Buy”, three recommend “Moderate Buy” and four recommend “Hold”. The average target price of NVDA stock is $173.71, 25% above the Dec. 9 closing price.
