Global top-tier technology investors predict that Nvidia's market value will be close to $5 trillion within 10 years.
1min read Global top tech investor James Anderson recently predicted that Nvidia's market cap could be close to $5 trillion in the next 10 years, surpassing the total market cap of all the S&P 500 index stocks (about $4.7 trillion). He said that the annual growth rate of demand for AI chips in data centers could be 60%. Looking ahead 10 years, if Nvidia's data center revenue grows at 60% annually and its margin remains unchanged, this will translate into a per-share profit of $1350 and a per-share free cash flow of about $1000. Assuming a free cash flow return of 5%, this means Nvidia's stock price could be $20,000 in 10 years, equivalent to a market cap of $4.9 trillion, with a 10-15% chance of this happening. Anderson believes Nvidia's growth potential is far greater than any other company he has seen. Although he expects Nvidia to experience a 35-40% stock price correction in the future, he believes such volatility is a normal phenomenon in the market development and continues to increase his holdings when the correction occurs.