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In just the past year, AI chip leader Nvidia has soared more than 200% into the upper echelon of the world\u2019s most valuable companies and is already closing in on Microsoft and Apple.<\/p>\n
But Beth Kindig, lead tech analyst at the I\/O Fund, sees more astronomical gains in the coming years, predicting Nvidia\u2019s market cap will surge another 270% to $10 trillion. As of Friday\u2019s close, the company was worth about $2.7 trillion.<\/p>\n
In an interview Tuesday on CNBC<\/a>, she pointed out Nvidia is fueling the AI infrastructure as its chips are in high demand for data centers that train large language models and later this year will release its Blackwell chips, which are expected to outperform the earlier Hopper chips.<\/p>\n In addition to hardware, Nvidia\u2019s software also gives it an advantage, while the automotive sector will deliver a further boost to the company, Kindig noted.<\/p>\n \u201cSo we have a lot coming,\u201d she said. \u201cThis is very, very early for Nvidia, and there\u2019s a few layers.\u201d<\/p>\n While rivals like AMD and Intel have made their own bullish forecasts on the AI market, Kindig said Nvidia will grab the \u201clion\u2019s share,\u201d adding that other tech giants developing chips in-house typically do it to optimize their own applications and won\u2019t commercialize the chips the way Nvidia does.<\/p>\n On the software side, she pointed to Nvidia\u2019s CUDA platform, comparing it to Apple\u2019s iOS operating system, which helped make the iPhone dominant.<\/p>\n \u201cThe same thing is happening with Nvidia, which is that the CUDA platform is what software engineers, AI engineers are learning in order to program GPUs,\u201d Kindig said. \u201cSo that helps lock them in. So that combination, right now, I\u2019m calling an impenetrable moat.\u201d<\/p>\n She has doubled down on a previous forecast for a $10 trillion valuation that she issued earlier this year, when she told RealVision<\/a> that Nvidia would reach that milestone by 2030. <\/p>\n Since then, Nvidia has reported fiscal first-quarter earnings<\/a> that topped Wall Street estimates and showed the race toward AI remained robust.<\/p>\n \u201cThe industry is going through a major change,\u201d\u00a0CEO Jensen Huang said on an earnings call last month. \u201cThe next industrial revolution has begun. Companies and countries are partnering with Nvidia to shift the trillion-dollar installed base of data centers to accelerate computing and build a new type of data center, AI factories, to produce a new commodity, artificial intelligence.\u201d<\/p>\n<\/div>\nSubscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up<\/a> for free.<\/div>\n