Nvidia Will Be a $10 Trillion Company, Blackwell Chip Will Be ‘Fireworks’ for Stocks, Analyst Says

• Nvidia is on track to hit a $10 trillion valuation, says analyst Beth Kindig.

• Kindig predicts strong growth and “fireworks” for the stock after Blackwell’s launch.

• Jensen Huang reassured investors about Nvidia’s next-generation AI chip, promising “billions” in revenue.

Nvidia is on track to triple its value, according to Beth Kindig, principal technology analyst at I/O Fund.

Speaking to Yahoo Finance on Thursday, Kindig said he expects Nvidia to command a $10 trillion valuation over the long term. That means monstrous earnings for the $2.9 trillion AI titan, thanks in large part to strong expected growth and gains from its next-generation AI chip, called Blackwell, Kindig said.

Investors on Wall Street have become concerned that Nvidia is becoming overvalued given its massive run over the past year and huge investor expectations for earnings growth. Shares of Nvidia fell more than 6% on Thursday after the company beat earnings for the second quarter, albeit more narrowly than in previous quarters.

Investors also have concerns about Nvidia’s Blackwell chip, after industry analysts reported that the chip’s launch will be delayed by two to three months due to “major issues in achieving high volume production.”

Kindig argues that Nvidia’s results were still “superior” and enough to allay the concerns of investors heading into the results.

Nvidia CEO Jensen Huang defended the progress on Blackwell in a recent interview with Bloomberg, revealing that the company had made a “massive shift to improve performance” and that it was looking to generate “billions of dollars” in revenue from the chip new generation.

“That’s why things are revised up and they’ve never been revised down,” 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 concern. In any case, he is extremely optimistic.”

Kindig predicted that Nvidia’s growth trajectory should become more apparent once Wall Street analysts revise upward fiscal estimates for next year. This should be a “big moment” for Nvidia, followed by the release of Blackwell’s 2025 shipment numbers.

“It’s going to be fireworks, I would say. The absolute, ultimate fireworks for Blackwell will come in Q1 with that guidance for Q2,” Kindig said. “Early next year there will be fireworks again for Nvidia, and we’ll be on track for $10 trillion.”

The story continues

Kindig’s forecast for the chip company is among the most bullish, although Wall Street still feels bullish on the chipmaker. Analysts issued an average price target of $151 per share, according to Nasdaq data, implying another 27% upside for the stock over the next 12 months.

Read the original article on Business Insider