Just in the past year, chip leader AI Nvidia has risen more than 200% to a senior position among the world’s most valuable companies and has approached Microsoft And Apple.
But Beth Kindig, lead technology analyst at the I/O Fund, sees much bigger benefits in the coming years, predicting Nvidia’s market capitalization will increase another 270% to $10 trillion. As of Friday’s close, the company was worth about $2.7 trillion.
in one Tuesday interview on CNBCShe pointed out that Nvidia is pushing AI infrastructure because its chips are in high demand for data centers training large language models, and later this year will release Blackwell chips, expected will perform better than previous Hopper chips.
Kindig noted that in addition to hardware, Nvidia’s software also gives the company an edge, while the automotive sector will give the company further momentum.
“So we have a lot coming up,” she said. “This is very, very early for Nvidia and there are a few layers to go.”
While competitors like AMD And Intel has issued its own optimistic forecast for the AI market, Kindig said Nvidia will grab “the lion’s share of the market,” adding that other tech giants developing chips in-house often do that’s to optimize their own applications and won’t commercialize the chip the way Nvidia does.
On the software side, she pointed to Nvidia’s CUDA platform, comparing it to Apple’s iOS operating system, which has given the iPhone an edge.
“The same thing is happening with Nvidia, which is that the CUDA platform is what software engineers, AI engineers are learning to program GPUs,” Kindig said. “So that helps lock them down. So that combination, right now, I’m calling an impenetrable moat.”
She doubled down on her previous forecast of a $10 trillion valuation she made earlier this year, when she told RealVision that Nvidia will reach that milestone by 2030.
Since then, Nvidia has reported First quarter fiscal earnings topped Wall Street estimates and showed the race for AI remains strong.
“The industry is going through a sea change,” CEO Jensen Huang said on an earnings call last month. “The next industrial revolution has begun. Companies and countries are working with Nvidia to move trillions of dollars worth of data center facilities installed to accelerate computing and build a new type of data center, AI factories, to produce a new commodity, artificial intelligence.”
