AI chip leader Nvidia has seen its market capitalization rise by more than 200% over the past year, propelling it to the top of the world's most valuable companies and already closing in on Microsoft and Apple.
But I/O Fund chief technology analyst Beth Kindig sees even more staggering gains in the coming years, predicting Nvidia's market cap could rise another 270% to $10 trillion. As of Friday's closing price, the company's market cap was about $2.7 trillion.
She noted in an interview with CNBC on Tuesday that Nvidia's chips are in high demand in data centers training large-scale language models, and that the company is pushing AI infrastructure forward as it plans to release its Blackwell chip later this year that is expected to outperform the previous Hopper chip.
In addition to hardware, Kindig noted that Nvidia's software also gives the company an edge, and the automotive division will provide an additional boost for the company.
“There's a lot to come,” she said. “This is very early days for Nvidia, and there are several layers to it.”
While rivals such as AMD and Intel have made bullish predictions about the AI market, Kindig said Nvidia will take the “largest share,” adding that other tech giants that develop their own chips typically do so to optimize their own applications and do not commercialize the chips like Nvidia does.
On the software side, she pointed to Nvidia's CUDA platform and compared it to Apple's iOS operating system, which has contributed to the iPhone's dominance.
“The same thing is happening with Nvidia, which is that the CUDA platform is what software engineers and AI engineers are learning to program the GPUs,” Kindig said. “That helps to corral them in. So, this combination now is what I call an impenetrable moat.”
She told RealVision earlier this year that she expected Nvidia to reach that milestone by 2030, doubling her previous prediction of a $10 trillion valuation.
Since then, Nvidia has reported first-quarter earnings that beat Wall Street expectations, signaling that the race toward AI remains hot.
“The industry is undergoing a major shift,” CEO Jensen Huang said in an earnings call last month. “The next industrial revolution has begun. Businesses and countries are partnering with NVIDIA to transform their trillion-dollar data center installed base into accelerated computing, building a new type of data center, an AI factory, to create a new commodity: artificial intelligence.”
