NVIDIA could very well be worth $50 trillion in a decade, claims Tesla and Amazon’s early investor James Anderson, saying that the AI wave will ride Team Green to new levels.
NVIDIA’s Revolution Could Very Well Take The Markets To a Whole New Level; Estimate Says The Firm Could Grow By 1,500% Over A Decade
The estimate by Anderson does look odd when you consider modern-day factors, but overall, the prediction isn’t that far-fetched, seeing how NVIDIA has managed to witness almost a whopping 10x in market cap within two years, simply due to the AI hype. Team Green has established a monopoly over the markets, and every other mainstream tech company is acquiring mind-boggling amounts of AI hardware from the firm, whether it is AI accelerators or large-scale clusters.
The potential scale of Nvidia in the most optimistic outcome is both way higher than I’ve ever seen before and could lead to a market cap of double-digit trillions. This isn’t a prediction but a possibility if artificial intelligence works for customers and Nvidia’s lead is intact.
– James Anderson, The Financial Times
Anderson currently runs the Lingotto Investment Management fund, worth $650 million, and he believes that if the AI hype continues at this pace, NVIDIA is very well set to witness almost a 1500% increase in market cap over the decade, putting the firm’s valuation higher than the entire S&P 500 today. Estimates say that right now, the global liquidity stands at $82.6 trillion; hence, imaging NVIDIA’s predicted market cap in the modern-day is almost impossible, but the estimate by Anderson isn’t odd at all, and here’s why.
Firstly, NVIDIA is the sole “mainstream” supplier of the AI industry, and by the mainstream, we mean the most dominating. Team Green’s AI portfolio is desired by every company out there, and the demand is out of the roof. Especially with the expected debut of the Blackwell generation, NVIDIA is set to clock in over one million orders for its Blackwell AI GPUs, racking up $35 billion just from GPU sales alone. If you account for the demand for the company’s AI servers, such as the GB200, Team Green’s expected revenue for this year could very well cross the $100 billion mark, too, from one product generation only.
Now, if you talk about the sustainability of the AI hype and the argument that it’s just another “dotcom” bubble, the capabilities AI brings into the modern day are entirely different. Artificial intelligence has fueled the growth of automation in the industry, which is a sector worth $50 trillion, according to NVIDIA’s CEO Jensen Huang. Generative AI and AGI have opened new doorways for consumers when it comes to visualizing and implementing certain concepts, and as Jensen says, AI is here to stay.
It’s important to note that our coverage isn’t financial advice at all; rather, it discusses market prospects in general. There have been bearish estimates surrounding NVIDIA, particularly from the likes of Cathie Wood, CEO of ARK Invest, so it is inconclusive to say how Team Green will perform ten years from now on. Given the AI hype stays in the market and NVIDIA continues to maintain its “presumed” monopoly, we are looking at a grand slam.