Analyst Believes NVIDIA's Market Value Could Hit $10 Trillion

I/O Fund's Chief Tech Analyst Beth Kindig has stated that NVIDIA's market value is expected to double. This also implies that she has given significant upside potential to the company's stock.

Kindig said in a recent interview that she anticipates NVIDIA's long-term valuation to reach $10 trillion, with the company's current market capitalization at $2.93 trillion.

She stated that the artificial intelligence (AI) giant will achieve substantial profits, primarily attributed to robust expected growth and revenue from its next-generation AI chip, Blackwell.

Considering NVIDIA's significant rise over the past year, along with investors' substantial expectations for its earnings growth, Wall Street investors are increasingly concerned that NVIDIA is becoming overvalued. Last week, after NVIDIA released its latest financial report, the stock price plummeted and its market value fell below $3 trillion due to the third-quarter earnings guidance not meeting investors' satisfaction.

On the other hand, investors are also worried about NVIDIA's Blackwell chip, with industry analyst reports stating that the chip's launch will be delayed by two to three months due to major issues in reaching high production volume.

Kindig believes that NVIDIA's performance remains very good, and investors should not be concerned.

NVIDIA's CEO, Jensen Huang, has recently defended the progress made on Blackwell in an interview, revealing that the company has undergone massive changes to increase production and hopes to generate billions of dollars in revenue from the next-generation chip.

When talking about her estimates for NVIDIA, Kindig said : That's why things are being revised up and they were never revised down. They're saying Blackwell is basically on time. Blackwell is not a concern. If anything, it's extremely bullish.

She anticipates that once Wall Street analysts raise their fiscal expectations for NVIDIA for the next year, the growth trajectory for NVIDIA will become more apparent. For NVIDIA, this should be a pivotal moment, followed by the shipment data for Blackwell in 2025.

That's going to be fireworks, is how I would put it. Absolute, ultimate fireworks for Blackwell will come in first-quarter, with that second-quarter guide, she said. Early next year will be fireworks again for NVIDIA, and we will be on track for that $10 trillion.

For now, Kindig's forecast for the chip company is the most optimistic. According to data from Nasdaq, the average target price given by analysts is $151 per share, which implies that the stock will still rise by 26.5% over the next 12 months.