Technology analyst Beth Kindig believes Nvidia will be worth $10 trillion by 2030.
Beth Kindig, technology analyst at I/O Fund, thinks about Nvidia: (NVDA 2.09%) The company will ride the artificial intelligence (AI) boom and reach a valuation of $10 trillion by 2030. If that prediction is correct, the semiconductor company will be worth more than the current value of Apple, Microsoft, Amazon, and Tesla combined.
Kindig’s forecast suggests a significant upside for NVIDIA shareholders. The company’s current market value is $3.5 trillion, but it would need to increase by 185% to reach $10 trillion. To reach this goal by 2030, stock prices would need to rise 19% annually over the next six years.
Of course, investors shouldn’t put too much stock into the target price (we’re not kidding), but Nvidia’s strength in AI makes it something to think about carefully.
Nvidia is participating in several areas of the burgeoning AI economy
Nvidia holds 98% market share in data center graphics processing units (GPUs), chips that accelerate complex tasks such as training large language models and running artificial intelligence (AI) applications. I’m doing it. As a result, Nvidia GPUs have become the de facto standard for AI accelerators, despite competition from technology companies like Alphabet and other chipmakers like AMD.
Nvidia introduced the CUDA programming model in 2006 and began laying the foundation for its dominance. CUDA has evolved into an unparalleled ecosystem of software development tools that enable programmers to create GPU applications. Nvidia is further strengthening its leadership by expanding into adjacent data center hardware areas, including central processing units (CPUs) and AI-specific networking equipment.
In other words, Nvidia is participating in various parts of the burgeoning AI economy. CEO Jensen Huang said the company’s ability to innovate across hardware and software is a key advantage, allowing the company to design data center systems with a superior total cost of ownership. In other words, when you consider direct and indirect costs, Nvidia GPUs are definitely cheaper (despite their premium price) than competing chips.
Image source: Getty Images.
Nvidia’s Blackwell GPUs could be a key catalyst in the short term
Nvidia reported solid financial results for its second quarter of fiscal 2025, ending in July 2024, beating revenue and bottom line expectations. Total revenue increased 122% to $30 billion, with particularly strong momentum in the data center division. Meanwhile, non-GAAP earnings increased 152% to $0.68 per diluted share. Management also provided better guidance than Wall Street had expected, predicting an 80% increase in third-quarter revenue.
Importantly, Nvidia is about to launch its next generation GPU, Blackwell. Blackwell delivers up to 4x faster AI training and 30x faster AI inference compared to the previous Hopper architecture. Blackwell’s production increases will begin in the fourth quarter (i.e., this quarter) and continue through fiscal 2026.
Earlier this year, CEO Jensen Huang predicted that Blackwell would be the “most successful product” in the company’s history, and perhaps the entire history of computing. Some Wall Street analysts are similarly optimistic about next-generation chips. “NVIDIA continues to see unprecedented demand that far exceeds our rapidly expanding production capacity,” Jeffries’ Blayne Curtis wrote in a recent note to customers.
Similarly, Piper Sandler’s Harsh Kumar predicts that AI accelerator sales will increase by $70 billion in 2025, with Nvidia expected to spend most of that increase as companies scramble for Blackwell chips. I believe you will get it. Kumar also recently said that NVIDIA has “historically surprised the public with turnarounds in the early stages of product launches.”
With any luck, NVIDIA could become a $10 trillion company by 2030
Going forward, AI accelerator sales are expected to grow at a rate of 29% per year through 2030, and spending across AI hardware, software, and services is expected to grow at a rate of 37% per year over the same period. Masu. Nvidia is participating in so many parts of the AI economy that it could be the company to make the most of the opportunity.
However, Nvidia also has an adjacent opportunity as data centers transition from general-purpose computing to accelerated computing. Jensen Huang believes that GPUs will be in every data center in the future, and he expects cumulative spending to reach $1 trillion over the next four to five years. Some of that spending will go toward data center accelerators, which will increase revenue by 25% annually through 2030, according to Grand View Research.
Wall Street expects NVIDIA’s adjusted earnings to grow 37% annually through fiscal 2027 (ending in January 2027). By this estimate, the current valuation of 66 times adjusted earnings looks fair. And if Nvidia maintains a similar trajectory, with earnings growing 31% annually over the next six years, its market value will reach $10 trillion by mid-2030, at a valuation of 37x P/E. It will decrease.
The market is currently giving Apple 37x revenue, so it seems reasonable to think Nvidia will command a similar price tag. That said, there’s no question that NVIDIA will need near-perfect execution and good luck to reach the $10 trillion mark by 2030. Either way, investors should consider buying a small position today.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Trevor Jennewine has held positions at Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Amazon, Apple, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
