Last year, AI chip leader Nvidia soared more than 200% into the upper tier of the world’s most valuable companies, already closing in on Microsoft and Apple.
But Beth Kindig, senior technology analyst at the I/O Fund, predicts more astronomical gains in the coming years, predicting Nvidia’s market cap will surge another 270%, reaching $10 trillion. As of Friday’s close, the company was valued at about $2.7 trillion.
to Tuesday CNBC InterviewShe pointed out that Nvidia is fueling its AI infrastructure with high demand for its chips for data centers training large-scale language models, and will release Blackwell chips later this year that are expected to outperform previous Hopper chips.
In addition to the hardware, Nvidia’s software also offers advantages, and the automotive segment will provide an even bigger boost to the company, Kindig said.
“So we’re going to be doing a lot of things,” she said. “For Nvidia, this is very early days and there are a few layers to it.”
Competitors such as AMD and Intel have issued their own optimistic forecasts for the AI market, but Kindig said Nvidia will get “the lion’s share.” Other tech giants that develop chips internally typically do this to optimize their own applications, but that won’t be the case, he added. Commercialize chips like Nvidia.
On the software side, she pointed to Nvidia’s CUDA platform, comparing it to Apple’s iOS operating system, which helped make the iPhone dominant.
“The same thing is happening at Nvidia, which is that the CUDA platform is what software engineers, AI engineers, learn to program GPUs,” Kindig said. “So it helps trap them. So right now, that combination is what we call an impenetrable moat.”
She doubled her previous forecast of a $10 trillion valuation released earlier this year. she told RealVision Nvidia says it will reach that milestone by 2030.
Since then, Nvidia has reported fiscal first-quarter earnings that beat Wall Street estimates and showed that the race toward AI remains strong.
“The industry is going through major changes,” CEO Jensen Huang said during an earnings call last month. “The next industrial revolution has begun. “Companies and countries are working with Nvidia to transform the trillion-dollar installed base of data centers to accelerate computing and build a new type of data center, the AI Factory, to produce a new commodity: artificial intelligence.”
