Nvidia’s stock has surged by over 700% since ChatGPT’s debut in late 2022, propelling the company to surpass the three trillion-dollar market cap threshold last year. One investor, Wise Bull, predicts that Nvidia will reach a $10 trillion market cap due to its dominant position in GPU technology.
Wise Bull believes demand for NVDA’s products will increase as computing power continues to grow and hyperscalers invest heavily in AI research. The investor dismisses concerns about competition, arguing that chipmaking is not the forte of hyperscalers like Google and Amazon. Nvidia’s software advantage through CUDA provides a critical edge that competitors have yet to rival.
Wise Bull also downplays concerns about valuation, pointing out that future revenue estimates are conservative compared to the massive opportunities awaiting the company. The PEG ratio is 34% lower than the sector median, underscoring Nvidia’s relative undervaluation. With a Strong Buy consensus rating and a 12-month average price target of $177.03, NVDA boasts significant upside potential.
As AI technology continues to advance, Nvidia’s position in the market is likely to remain dominant, making it an attractive investment opportunity for those looking to capitalize on the trend.
Source: https://www.tipranks.com/news/can-nvidia-stock-reach-a-10-trillion-market-cap-heres-what-this-investor-expects