In just the past year, AI chip leader Nvidia has soared 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 the I/O Fund, sees more astronomical gains in the coming years, predicting Nvidia’s market cap will surge another 270% to $10 trillion. As of Friday’s close, the company was worth about $2.7 trillion.
In an interview Tuesday on CNBC, she pointed out Nvidia is fueling the AI infrastructure as its chips are in high demand for data centers that train large language models and later this year will release its Blackwell chips, which are expected to outperform the earlier Hopper chips.
In addition to hardware, Nvidia’s software also gives it an advantage, while the automotive sector will deliver a further boost to the company, Kindig noted.
“So we have a lot coming,” she said. “This is very, very early for Nvidia, and there’s a few layers.”
While rivals like AMD and Intel have made their own bullish forecasts on the AI market, Kindig said Nvidia will grab the “lion’s share,” adding that other tech giants developing chips in-house typically do it to optimize their own applications and won’t commercialize the 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 make the iPhone dominant.
“The same thing is happening with Nvidia, which is that the CUDA platform is what software engineers, AI engineers are learning in order to program GPUs,” Kindig said. “So that helps lock them in. So that combination, right now, I’m calling an impenetrable moat.”
She has doubled down on a previous forecast for a $10 trillion valuation that she issued earlier this year, when she told RealVision that Nvidia would reach that milestone by 2030.
Since then, Nvidia has reported fiscal first-quarter earnings that topped Wall Street estimates and showed the race toward AI remained robust.
“The industry is going through a major change,” CEO Jensen Huang said on an earnings call last month. “The next industrial revolution has begun. Companies and countries are partnering with Nvidia to shift 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.”
This story was originally featured on Fortune.com
