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Nvidia is on track to reach a $10 trillion valuation, according to analyst Beth Kindig.
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Kindig predicts strong growth and « fireworks » for the stock after its launch at Blackwell.
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Jensen Huang reassured investors about Nvidia’s next-generation AI chip, promising « billions » in revenue.
Nvidia is on track to more than triple in value, according to Beth Kindig, senior technology analyst at I/O Fund.
Speaking to Yahoo Finance on Thursday, Kindig said she expects Nvidia to reach a $10 trillion valuation over the long term. That implies monstrous gains for the $2.9 trillion AI titan, largely driven by expected strong growth and gains from its next-generation AI chip, dubbed Blackwell, Kindig said.
Wall Street investors are increasingly concerned that Nvidia is overvalued, given its massive rise over the past year and investor anxiety. huge expectations for profit growth. Shares of Nvidia fell more than 6% on Thursday after the company beat the profits for the second quarter, although more narrowly than in previous quarters.
Investors are also concerned about Nvidia’s Blackwell chip after industry analysts reported that the Chip launch to be postponed two to three months due to “major problems in achieving high production volume.”
Kindig maintains that Nvidia’s results were still « excellent » and enough to allay investor concerns ahead of the results.
Jensen Huang, CEO of Nvidia defended the progress made on Blackwell in a recent interview with Bloomberg, revealing that the company made a “massive shift to improve efficiency” and was looking to generate “billions of dollars” in revenue from the next-generation chip.
“That’s why things are revised up and never down,” Kindig said of Nvidia’s estimates, adding that she remains positive about Blackwell’s upcoming release. “They say Blackwell is basically on schedule. Blackwell is not a problem. On the contrary, it’s extremely optimistic.”
Kindig predicted that Nvidia’s growth trajectory should become more evident once Wall Street analysts revise their fiscal estimates for next year upwards. That should be a « big moment » for Nvidia, followed by the release of Blackwell’s 2025 shipment volume figures.
“It’s going to be fireworks, is how I would put it. The absolute, ultimate fireworks for Blackwell will be in the first quarter, with that guidance for the second quarter,” Kindig said. “The beginning of next year will be fireworks again for Nvidia, and we’ll be on track to hit that $10 trillion.”
Kindig’s forecast for the chipmaker is among the most optimistic, even as Wall Street remains bullish on the chipmaker. Analysts have issued an average price target of $151 per share, according to Nasdaq data, implying a further 27% upside for the stock over the next 12 months.
Read the original article on Business Insider
