In the last year alone, the AI chip leader Nvidia has climbed 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, senior technology analyst at I/O Fund, forecasts even more astronomical gains in the coming years, predicting that Nvidia’s market cap will increase another 270% to $10 trillion. As of Friday’s close, the company was worth about $2.7 trillion.
In a interview Tuesday on CNBCShe noted that Nvidia is powering AI infrastructure because its chips are in high demand by data centers that train large language models and that it will launch its Blackwell chips later this year, which are expected to outperform previous chips Hopper.
Besides hardware, Nvidia’s software also gives it an advantage, while the automotive sector will bring new momentum to the company, Kindig noted.
“So we have a lot of things coming,” she said. “It’s very, very early for Nvidia, and there are a few layers.”
While rivals love AMD And Intel made their own bullish forecasts for the AI market, Kindig said Nvidia would grab the “lion’s share,” adding that other tech giants developing chips in-house typically do so to optimize their own applications and will not market the chips like Nvidia. do.
On the software side, she highlighted Nvidia’s CUDA platform, comparing it to Apple’s iOS operating system, which helped make the iPhone dominant.
“The same thing is happening with Nvidia, which is that the CUDA platform is what software engineers and AI engineers learn to program GPUs,” Kindig said. “So that helps lock them in. So that combination, right now, I call an impenetrable moat.”
It doubled its previous forecast of a $10 trillion valuation that it released earlier this year, as she told RealVision that Nvidia would reach this milestone by 2030.
Nvidia has since reported first quarter fiscal results which beat Wall Street estimates and showed that the race toward AI remains robust.
“The industry is going through a major shift,” CEO Jensen Huang said during an earnings 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 product, artificial intelligence.
