Analyst Beth Kindig said Nvidia’s valuation could reach $10 trillion.
Kindig expects the stock to grow strongly and “explode” following Blackwell’s launch.
Jensen Huang has assured investors about Nvidia’s next-generation AI chips, promising “billions of dollars” in revenue.
Nvidia’s value is expected to more than triple, according to Beth Kindig, principal technology analyst at I/O Fund.
In the long term, Kindig said in an interview with Yahoo Finance on Thursday, he expects Nvidia’s valuation to reach $10 trillion, which Kindig said would mean huge gains for the $2.9 trillion AI giant, mainly due to strong growth in its next-generation AI chips, called Blackwell, and rising profits.
Wall Street investors are growing concerned that Nvidia may be overvalued, given the company’s sharp rise in stock price over the past year and investors’ high expectations for profit growth. Nvidia shares fell more than 6% on Thursday after the company reported second-quarter profit that beat expectations, though by a smaller margin than the previous quarter.
Investors are also concerned about Nvidia’s Blackwell chips after industry analysts reported that “major issues with mass production” could delay the chip launch by two to three months.
Kindig maintains that Nvidia’s performance remains “stellar” and should be enough to allay investor concerns heading into the earnings release.
Nvidia CEO Jensen Huang defended Blackwell’s progress in a recent interview with Bloomberg, saying the company is making “major changes to improve yields” and hopes to generate “billions of dollars” in revenue from its next-generation chips.
“That’s why things have been revised up, never down,” Kindig said of Nvidia’s forecasts, adding that he remains positive about Blackwell’s upcoming announcements. “They’re saying Blackwell is essentially on track. Blackwell is not a concern. If anything, I’m extremely bullish.”
Kindig predicted that Nvidia’s growth trajectory should become clearer once Wall Street analysts upgrade their financial outlook for next year. That should be a “big moment” for Nvidia, followed by the release of Blackwell’s 2025 shipment data.
“It’s like fireworks, is how I would put it. The absolute, ultimate fireworks for Blackwell will come in the first quarter with their second-quarter guidance,” Kindig said. “The fireworks will come again for Nvidia early next year, and we’ll be well on our way to $10 trillion.”
The story continues
While Kindig’s forecast for the chip company is one of the most bullish, Wall Street remains optimistic about the company: Analysts have an average price target of $151 a share, implying an additional 27% upside for the stock over the next 12 months, according to Nasdaq data.
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