A leading tech stock investor expects Nvidia's share price to hit $20,000 in the next decade.

James Anderson, an early-stage tech investor who made his fortune from investments in Tesla and Amazon, said Nvidia's market cap could be $5 trillion in the next decade, more than the combined market cap of the S&P 500. He said Nvidia's potential size would be far greater than ever seen before, and that a $5 trillion market cap for Nvidia would be not a prediction but a possibility, given Nvidia's leadership in AI. Mr. Anderson said that the demand for AI chips in data centers could grow at 60 per cent a year. In the most optimistic scenario, he said, Nvidia's data center revenue could grow at 60 per cent a year and its margins stay constant, which would translate into earnings per share of $1350 and free cash flow per share of about $1000. At a 5 per cent free cash flow yield, that would imply a stock price of $20,000 in 10 years, or a market cap of $4.9 trillion, with a 10 to 15 per cent chance of that happening.