Finance
Nvidia will grow into a $10 trillion company and the Blackwell chip will be like ‘fireworks’ for the stock, says analyst
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Nvidia is on track to reach a $10 trillion valuation, says analyst Beth Kindig.
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Kindig predicts strong growth and “fireworks” for the stock after the Blackwell launch.
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Jensen Huang assured investors of Nvidia’s next-generation AI chip and promised “billions” in revenue.
Nvidia is on track to more than triple its value, according to Beth Kindig, chief technology analyst at I/O Fund.
Speaking to Yahoo Finance on Thursday, Kindig said she expects Nvidia to achieve a $10 trillion valuation in the long term. That implies huge profits for the $2.9 trillion AI titan, largely due to strong expected growth and profits from its next-generation AI chip, called Blackwell, Kindig said.
Investors on Wall Street have become concerned that Nvidia is becoming overvalued given its meteoric rise over the past year and investor unrest. enormous expectations for profit growth. Nvidia shares fell as much as 6% on Thursday after the company beat profits for the second quarter, albeit more limited than previous quarters.
Investors are also concerned about Nvidia’s Blackwell chip, after industry analysts reported that the chip launch would be postponed by two to three months due to “major difficulties in achieving high production volume.”
Kindig said Nvidia’s results were still “great,” and enough to allay investor concerns about the results.
Nvidia CEO Jensen Huang defended the progress regarding Blackwell in a recent interview with Bloomberg, revealing that the company was making a “massive change to improve yields” and looking to rake in “billions of dollars” in revenue from the next-generation chip.
“That’s why things are adjusted upward and never downward,” Kindig said of Nvidia’s estimates, adding that she remained positive about Blackwell’s upcoming release. “They say Blackwell is basically on time. Blackwell is not a problem. In any case, it is extremely optimistic.”
Kindig predicted that Nvidia’s growth trajectory should become clearer once Wall Street analysts revise upward budget estimates for next year. That should be a “big moment” for Nvidia, followed by the release of shipping volume figures for Blackwell in 2025.
“That’s going to be fireworks, that’s how I would put it. Definitely, ultimate fireworks for Blackwell come in the first quarter, with that second quarter guide,” Kindig said. “It will be fireworks for Nvidia again early next year, and we are on track for that $10 trillion.”
Kindig’s forecast for the chip company is among the most bullish, although Wall Street is still bullish on the chipmaker. Analysts have issued an average price target of $151 per share Nasdaq data, implying a 27% upside for the stock over the next twelve months.
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