Nvidia stock potential: 258% upside with 'impenetrable moat,' analyst predicts $10 trillion valuation by 2030

Nvidia stock set to surge 258% to $10 trillion by 2030, driven by Blackwell GPU chip, software platform, and automotive market.

According to tech analyst Beth Kindig from I/O Fund, Nvidia stock is predicted to skyrocket by 258% from its current levels and reach a staggering $10 trillion market valuation by the year 2030. This significant growth is expected to follow Nvidia's already impressive performance this year, with the stock more than doubling and tripling in 2023, largely due to the increasing popularity of its H100 AI chips.

Nvidia currently holds a market valuation of $2.8 trillion, making it the third-largest company globally. Kindig believes that Nvidia's upcoming Blackwell GPU chip, in addition to its CUDA software platform and presence in the automotive market, will drive further substantial growth for the company.

Kindig forecasts that the Blackwell GPU chip will surpass its predecessor, the H100, and generate data center revenue of $200 billion by the end of Nvidia's fiscal year 2026. The chip is expected to support trillion-plus large language models, aligning with the direction big tech is moving towards. Kindig emphasized that this is just the beginning for Nvidia, with significant potential in the hardware data center segment, software integration, and automotive market.

The analyst's optimism towards Nvidia's future success is based on the belief that the company has established an "impenetrable moat" around its GPU business. Kindig anticipates that Nvidia will dominate the AI data center market, with estimates projecting a total addressable market of $400 billion by 2027 and $1 trillion by 2030, largely outperforming competitors like AMD and Intel.

Kindig highlighted Nvidia's CUDA software platform as a key factor in its competitive advantage, likening it to the iOS platform that solidified Apple's hold on the smartphone market. The CUDA platform serves as a crucial tool for AI engineers programming GPUs, creating a strong customer lock-in effect that contributes to Nvidia's market dominance.

Furthermore, Kindig dismissed concerns about custom silicon AI chips developed by tech giants like Amazon and Alphabet directly competing with Nvidia. She explained that these companies are unlikely to commercialize and sell chips in the same way Nvidia does, giving Nvidia a clear runway for continued success.

Recent reports from Business Insider indicated that Amazon has faced challenges in developing AI GPU chips that can rival Nvidia's offerings over the past four years, further supporting Kindig's bullish outlook on Nvidia's future prospects.

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