Nvidia stock outlook: Analyst expects market capitalization of $10 trillion

But Beth Kindig, senior technology analyst on the I/O Fund, expects much more astronomical gains in the approaching years, predicting that Nvidia’s market cap will rise one other 270% to $10 trillion. At the close of trading on Friday, the corporate was price about $2.7 trillion.

In a Interview on Tuesday on CNBCShe noted that Nvidia is pushing AI infrastructure because its chips are in high demand in data centers that train large language models, and that the corporate will launch its Blackwell chips later this yr, that are expected to outperform the sooner Hopper chips.

In addition to hardware, Nvidia can be competitive within the software industry, and the automotive sector will give the corporate an additional boost, said Kindig.

“So there’s still a lot to come,” she said. “It’s still very, very early days for Nvidia, and there are still a few layers to go.”

While rivals like AMD and Intel have made their very own optimistic predictions for the AI ​​market, Kindig believes Nvidia will grab the “lion’s share.” He adds that other tech giants that develop chips in-house typically accomplish that to optimize their very own applications and won’t commercialize the chips in the identical way Nvidia has.

On the software side, she pointed to Nvidia’s CUDA platform and compared it to Apple’s iOS operating system, which contributed to the iPhone’s market dominance.

“The same thing is happening at Nvidia. Software engineers and AI engineers are learning the CUDA platform to program GPUs,” Kindig said. “That helps them lock in. That combination is what I call an impenetrable moat right now.”

It doubled its previous forecast of $10 trillion made earlier this yr when she said RealVision that Nvidia would reach this milestone by 2030.

Since then, Nvidia has reported earnings for its fiscal first quarter that beat Wall Street estimates and showed that the race toward AI stays robust.

“The industry is going through a major transformation,” CEO Jensen Huang said on a conference call last month. “The next industrial revolution has begun. Companies and countries are working with Nvidia to move the trillion-dollar installed base of data centers to accelerate computing and build a new kind of data center, AI factories, to produce a new product: artificial intelligence.”