For a while now, I’ve been predicting Nvidia (NASDAQ: NVDA) stock’s going to experience another move higher. I’ve been buying more shares in the chipmaker in preparation for such a move at prices ranging $210-$225.

It looks like this move could now be taking place. Because this week, Nvidia’s broken out of a trading range it has been stuck in, and hit new all-time highs.

Building a foundation for the next move up

After rising to $235 back in May, Nvidia’s taken a breather in recent months. In technical terms, it’s been going through a period of consolidation where it’s been digesting its gains (and potentially building a foundation for another move up).

I think one reason it’s taken a rest is that many investors have struggled with the $5trn+ market-cap. Can the company – which not so long ago was predominantly a video gaming hardware business – really get much bigger than that?

Could we see a $10trn market-cap?

I’ve always been of the belief that it can. This may sound crazy but I wouldn’t be surprised to see Nvidia command a $10trn market-cap in the not-too-distant future.

This company is still growing at a prolific rate, despite the fact that it’s the largest business in the world today. This financial year (ending 31 January 2027), its revenue is forecast to rise around 90% year on year to $410bn.

Next financial year, analysts expect its revenue to hit $698bn. One key driver of the growth here is likely to be massive orders from SpaceX – Elon Musk has pretty much said that he’ll buy every Nvidia GPU he can get access to.

The stock’s dirt cheap

As for the company’s valuation, it’s incredibly low. Looking at earnings forecasts for next financial year, the price-to-earnings (P/E) ratio here’s only 15.

To my mind, Nvidia’s extremely undervalued at that earnings multiple. I think it could easily trade on a P/E ratio of 25, which would imply potential gains of almost 70%.

It’s worth noting that Wall Street analysts share my view that the stock’s undervalued. Currently, the average 12-month price target for Nvidia is $325.

That’s about 37% above the current share price. So analysts see the potential for big gains from here.

Time to play catch up?

One other thing to note is that the stock’s massively underperformed a lot of its semiconductor peers over the last year. While AMD and Marvell are both up 170%+, Nvidia’s only ahead about 25%.

I reckon it’s about to play catch up. I’m targeting $275 in the near term before a move to $300 – potentially in 2027.

Worth a closer look today?

Now, there are plenty of risks to my thesis, of course. If we hear that AI infrastructure spending’s slowing, Nvidia’s share price could take a hit.

General market weakness is another risk. If rising bond yields result in market turbulence, Nvidia could move lower.

Taking a medium-term view however, I’m very bullish on the chip stock. I believe it’s worth considering at current levels, despite the enormous market-cap.

Should you invest £5,000 in Nvidia right now?

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Edward Sheldon owns shares in Nvidia, SpaceX, and Marvell.