It's impossible to ignore the effect artificial intelligence (AI) has had on the technology landscape over the past year or so, and Nvidia (NVDA 0.25%) has been the standard bearer. The company's chips are at the heart of the AI revolution, providing the computational horsepower that makes it all possible. This, in turn, has sent the stock soaring, up 215% over the past year. These gains led to Nvidia's high-profile 10-for-1 stock split, which was completed just last week.

After the stock's epic run to a $3 trillion market cap, Wall Street is reevaluating Nvidia's future prospects. There's a new price target from one analyst that should be of particular interest to shareholders.

Next stop: $5 trillion?

Rosenblatt Securities analyst Hans Mosesmann reiterated his buy rating on Nvidia stock and increased his price to $200. That represents potential upside for investors of 53% compared to Monday's closing price, and would push Nvidia's market cap within striking distance of $5 trillion. One aspect of Nvidia's business that's being overlooked by investors is the software side. "The real narrative lies in the software that complements all the hardware goodness," the analyst wrote.

He went on to suggest that demand for software will increase over the course of "the next decade in terms of overall sales mix."

I think the analyst hit the nail on the head. Nvidia's edge lies not only in the hardware but also in the associated software that helps provide peak performance. Cathie Wood of Ark Invest estimates that the total addressable market for AI software could be worth $13 trillion by 2030, helping illustrate the magnitude of the opportunity ahead.

Furthermore, Nvidia will begin shipping its next-generation Blackwell processors later this year, which will cement the company's increasing lead in the AI chip space.

Nvidia's stock is currently selling for 51 times forward earnings. While that's a premium valuation, it's an attractive price for a stock that has generated gains of 27,450% over the past 10 years.

There's a long runway ahead, which is why Nvidia stock is a buy.