I/O Fund analyst Beth Kindig says Nvidia could be a $20 trillion company by 2030, a forecast that implies a 340% upside to its current market value.
CEO Elon Musk says physical AI could make Tesla a $25 trillion company in the future, a forecast that implies a 1,560 percent upside to its current market value.
Nvidia trades at a very reasonable valuation, but Tesla is harder to value because physical AI products are a negligible source of revenue today.
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Nvidia(NASDAQ: NVDA) and adze(NASDAQ:TSLA) are two of the most valuable companies in the world, primarily because they are deeply involved in the artificial intelligence (AI) revolution. Nvidia provides accelerated computing platforms that power AI workloads, and Tesla develops self-driving technology and humanoid robots.
Some experts believe the companies will be worth much more (at least $20 trillion) in the future:
I/O Fund analyst Beth Kindig says Nvidia could be worth $20 trillion by 2030. That’s about a 340% upside to its current market value of $4.5 trillion.
CEO Elon Musk says Tesla could be worth $25 trillion at some point in the future. That’s about a 1,560% premium to its current market value of $1.5 trillion.
Here’s what investors should know about these AI stocks.
Image source: Getty Images.
Nvidia’s graphics processing units (GPUs), chips that accelerate demanding data center workloads, are the industry standard in artificial intelligence (AI) infrastructure. Not only because they consistently outperform GPUs from other chipmakers, but also because Nvidia complements its GPUs with adjacent hardware and software. The company says it uses a “full-stack” approach to accelerated computing.
Nvidia accounted for about 85% of AI accelerator sales in 2025, and many analysts expect the company to maintain a similar level of dominance in the coming years. While other chips may be cheaper, Nvidia systems typically have the lowest total cost of ownership because customers don’t have to integrate hardware from different vendors or build software development tools from scratch.
Last week, Nvidia CEO Jensen Huang dismissed concerns about an AI bubble at the World Economic Forum in Davos. “There are trillions of dollars of infrastructure that needs to be done [be] built,” he commented during an interview. Indeed, Grand View Research expects data center GPU sales to grow 36 percent annually through 2033, and I/O Fund analyst Beth Kindig expects Nvidia’s data center revenue growth to match that pace.
Wall Street expects Nvidia’s adjusted earnings to grow 38% annually over the next three years. That makes the current valuation of 46 times earnings look pretty reasonable. I think Nvidia could reach a $20 trillion market cap in the future, but I’m skeptical about the timing. It could happen by 2030, but 2035 seems more plausible.
Regardless, the stock’s current price is attractive compared to forward earnings estimates, so patient investors should consider buying a small position today.
Last year, Tesla lost its status as the global leader in electric car sales to the Chinese automaker BYD. But investors brushed aside losses in market share and corresponding financial results as the investment thesis now focuses on physical AI, a discipline that includes autonomous cars and robots.
Tesla’s full self-driving software (FSD) is available in the US and (pending regulatory approval) could launch in Europe and China in February. The Company will monetize FSD directly through subscription sales and indirectly through standalone sharing services. AlphabetWaymo is currently the market leader with commercial robotaxi services in five US cities. But Tesla plans to expand from two cities to seven cities in 2026, and believes its unique vision-only strategy will support rapid expansion.
Tesla is also building a humanoid robot called Optimus, which could substantially disrupt the global job market by automating a wide range of jobs, and not just dangerous and boring jobs, but also operations and other tasks that require delicacy and precision. CEO Elon Musk says Optimus will eventually be the most important product the company sells, accounting for up to 80 percent of its value.
Physical AI is a significant opportunity for Tesla. Grand View Research expects the robotaxi market to expand by 99% annually through 2033. Meanwhile, Morgan Stanley estimates that self-driving vehicle sales could approach $4 trillion annually by 2040, while sales of humanoid robots grow by 54% annually through 2035.
Here’s the big picture: Musk says Tesla’s expertise in physical AI is unmatched. “Nobody can do what we do,” he told analysts last year. However, the stock is very difficult to value. The core electric car business is struggling, and physical AI products are not yet a material source of revenue. That creates execution risk.
In other words, while Tesla may indeed be worth $25 trillion in the future, the company could also be worth much less if it fails to execute on opportunities in robotaxis and robotics. Indeed, if investors lose faith in the AI physics narrative and start valuing Tesla like an auto stock, the stock could easily drop 90%.
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Trevor Jennewine has positions in Nvidia and Tesla. The Motley Fool has positions in and recommends Alphabet, Nvidia and Tesla. The Motley Fool recommends BYD. The Motley Fool has a disclosure policy.
2 AI stocks to buy before it hits $20 trillion, according to Wall Street experts was originally published by The Motley Fool
