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Analyst Beth Kindig said Nvidia’s valuation could reach $10 trillion.
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Kindig expects the stock to grow strongly and “explode” following Blackwell’s launch.
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Jensen Huang has assured investors about Nvidia’s next-generation AI chips, promising “billions of dollars” in revenue.
Nvidia’s value is expected to more than triple, according to Beth Kindig, principal technology analyst at I/O Fund.
In the long term, Kindig said in an interview with Yahoo Finance on Thursday, he expects Nvidia’s valuation to reach $10 trillion, which Kindig said would mean huge gains for the $2.9 trillion AI giant, mainly due to strong growth in its next-generation AI chips, called Blackwell, and rising profits.
Wall Street investors are growing concerned that Nvidia may be overvalued, given its meteoric rise over the past year and investor support. High expectations Due to profit growth. Nvidia shares fell more than 6% on Thursday. Beyond profit In the second quarter, sales declined year-over-year, although at a smaller rate than the previous quarter.
Investors are concerned following an industry analyst’s report on Nvidia’s Blackwell chips. The launch of the chip will be delayed It will be extended by two to three months due to “major issues with mass production.”
Kindig maintains that Nvidia’s performance remains “stellar” and should be enough to allay investor concerns heading into the earnings release.
NVIDIA CEO Jensen Huang In a recent interview, he defended Blackwell’s progress. In an interview with Bloomberg, the company revealed that it is making “major changes to improve yields” and hopes to generate “billions of dollars” in revenue from its next-generation chips.
“That’s why things have been revised up, never down,” Kindig said of Nvidia’s forecasts, adding that he remains positive about Blackwell’s upcoming announcements. “They’re saying Blackwell is essentially on track. Blackwell is not a concern. If anything, I’m extremely bullish.”
Kindig predicted that Nvidia’s growth trajectory should become clearer once Wall Street analysts upgrade their financial outlook for next year. That should be a “big moment” for Nvidia, followed by the release of Blackwell’s 2025 shipment data.
“It’s like fireworks, I’d say. The absolute, ultimate fireworks for Blackwell will come in the first quarter with their second-quarter guidance,” Kindig said. “The fireworks will come again for Nvidia early next year, and we’ll be well on our way to $10 trillion.”
While Kindig’s forecast for the chipmaker is one of the most bullish yet, Wall Street remains optimistic about the company, with analysts on average offering a price target of $151 a share. Nasdaq The data suggests the stock will rise a further 27% over the next 12 months.
Read the original article Business Insider
