In just the past year, AI chip leader Nvidia has risen more than 200% into the upper echelon of the world’s most valuable companies and is already closing in on Microsoft and Apple.
But Beth Kindig, lead tech analyst at I/O Fund, predicts even more astronomical growth in the coming years, predicting Nvidia’s market capitalization will rise another 270% to $10 trillion. At the close of trading on Friday, the company was worth about $2.7 trillion.
IN Tuesday interview on CNBCShe noted that Nvidia is supporting artificial intelligence infrastructure as its chips are in high demand in data centers training large language models, and will release its Blackwell chips later this year, which are expected to outperform earlier Hopper chips.
In addition to hardware, software also gives Nvidia an edge, and the auto sector will provide additional momentum for the company, Kindig said.
“So we have a lot ahead of us,” she said. “It’s very, very early for Nvidia, and there are several layers to it.”
While rivals like AMD and Intel have made their own bullish forecasts for the artificial intelligence market, Kindig said Nvidia will capture the “lion’s share,” adding that other tech giants that develop chips in-house typically do so to optimize their own applications and will not commercialize chips the way Nvidia does.
On the software side, she pointed to Nvidia’s CUDA platform, comparing it to Apple’s iOS operating system, which helped the iPhone dominate.
“The same thing is happening with Nvidia: the CUDA platform is what software engineers and AI engineers are learning to program GPUs,” Kindig said. “So it helps lock them down. So that combination right now is what I call an impenetrable moat.”
She doubled her previous $10 trillion valuation forecast she released earlier this year when she told RealVision that Nvidia will reach this milestone by 2030.
Nvidia has since reported fiscal first-quarter earnings that beat Wall Street estimates and showed the race for artificial intelligence remains resilient.
“The industry is undergoing major changes,” Chief Executive Officer Jensen Huang said on a financial conference call last month. “The next industrial revolution has begun. Companies and countries are partnering with Nvidia to move the trillion-dollar installed base of data centers to accelerate computing and build a new type of data center—AI factories—to produce a new commodity—artificial intelligence.”