Nvidia shares are up 258% as its ‘impenetrable moat’ will propel it to a $10 trillion valuation by 2030, says tech analyst

• Nvidia will be worth $10 trillion by 2030 as its next-generation Blackwell GPU generates huge revenue gains.

• That’s according to Beth Kindig, technology analyst at I/O Fund, who said Nvidia has a huge moat around its business.

• Kindig said Nvidia’s next stage of growth will come from its CUDA software platform.

Nvidia shares will rise 258% from current levels and reach a market valuation of $10 trillion by 2030, according to Beth Kindig, technology analyst at I/O Fund.

Such gain would come later Nvidia shares have more than doubled so far this year and more than tripled in 2023 thanks to the rapidly growing adoption of its H100 AI chips.

Nvidia has a valuation of $2.8 trillion and is the third largest company in the world.

According to Kindig, Nvidia cutting-edge Blackwell GPU chip will drive another round of massive growth for the chipmaker, along with its CUDA software platform and its exposure to the automotive market.

Kindig estimates that the Blackwell GPU will surpass its predecessor, the H100, and generate data center revenue of $200 billion by the end of Nvidia’s 2026 fiscal year.

Blackwell “will enable and enable over a trillion large language models, which is exactly where big tech is trying to get to. These components equate to a very large data center segment of hardware, so we have the software coming. . and then the third is automotive, so we have a lot to come. This is very, very early for Nvidia,” Kindig said. told CNBC on Tuesday.

Kindig’s long-term optimism about Nvidia stems from the idea that the company has an “impenetrable moat” around its GPU business.

Kindig said estimates for the AI ​​data center market’s total addressable market rising to $400 billion by 2027 and $1 trillion by 2030 will largely be captured by Nvidia rather than its biggest competitors. OMG or Information.

“Nvidia will take the lion’s share of this,” Kindig said, and that’s largely due to the software offerings Nvidia is integrating into its hardware products.

“The CUDA software platform is what developers learn. So similar to iOS is really what hooked people to the iPhone because developers were developing apps for the iPhone. The same thing is happening with Nvidia, which is the platform CUDA which is what AI engineers are learning to program GPUs, which helps lock them in, and that combination, right now, I’m calling an impenetrable moat,” Kindig explained.

Finally, the custom silicon AI chips that are being developed in-house at large-cap technology companies like Amazon It is Alphabet will never compete directly with Nvidia, according to Kindig.

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“They’re not going to market and sell chips in the same way that Nvidia does, so Nvidia has an open runway there,” Kindig said.

Business Insider reported Over the past week, Amazon has been struggling in its attempt to make AI GPU chips that can compete with Nvidia’s over the past four years.

Read the original article at Business Insider