After a strong performance in the first half of 2024, which increased Nvidia’s (NASDAQ: NVDA) stock value by 166.64%, the recent period has been somewhat bumpy for NVDA shares, with losses of 1.94% in the previous month.
Recent trading sessions have not brought any change. A decrease of 1.47% in the past five days and a 0.62% drawback in the latest trading session have put the NVDA stock price at $128.35 as of July 15 close.
Despite this, analysts remain bullish on the prospects and growth of this artificial intelligence (AI) chipmaker, with the most optimistic one predicting an almost 1,500% increase from its current market cap of $3.15 trillion in just a decade.
Picks for you
Nvidia is set to increase its valuation by 16-fold
In particular, James Anderson, an early investor in Amazon (NASDAQ: AMZN) and Tesla (NASDAQ: TSLA), believes Nvidia could reach a $50 trillion valuation in the next decade.
Anderson, formerly of Baillie Gifford and now running a $650 million fund with Nvidia as its top investment, praised the company’s rapid progress, competitive edge in hardware and software, and strong leadership in an interview with Harriet Agnew and George Steer from The Financial Times.
“The potential scale of Nvidia in the most optimistic outcome is way higher than I’ve ever seen before and could lead to a market cap of double-digit trillions,” Anderson told The FT. “This isn’t a prediction but a possibility if artificial intelligence works for customers and Nvidia’s lead is intact.”
In a letter to investors, the fund manager mentioned that Nvidia has a 10% to 15% chance of achieving a $49 trillion market cap due to data center demand growth. He also highlighted the long-term development of GPU usage in AI and other fields.
Nvidia’s AI chips, crucial for training advanced models, have significantly boosted the company’s revenue and market value amid the artificial intelligence boom.
After record fourth-quarter earnings in February, Nvidia became the first semiconductor company to reach a $2 trillion valuation. In June, it briefly surpassed Microsoft (NASDAQ: MSFT) and Apple (NASDAQ: AAPL), hitting a $3 trillion market cap and becoming the world’s most valuable company.
Nvidia already saw a 160% increase in this year so far
As Nvidia kicked off 2024 at a $1.21 trillion valuation and managed a 160% growth in the first six months while reaching $3.15 trillion, Anderson’s prediction could hold if this rapid growth continues.
If the chipmaker giant continues its growth, reaching a $50 trillion market cap within a decade will become a reality, barring any surprises that could disrupt its status as a leader and the largest producer and provider of AI chips.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
