One extremely optimistic scenario that NVIDIA can be worth almost $ 50 trillion in 10 years.
A more justified but still optimistic forecast is that the upper limit of the NVIDIA market is up to 2035. Will be able to reach $ 27 trillion.
However, this prognosis depends on the constant growth of AI, while Nvidia supports its competitive advantages.
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It is difficult to find forecasts since 2015 Nvidia(NASDAQ: NVDA) would be 10 years in the future. However, I suspect that few hoped that the company would then estimate the value of about $ 4.4 trillion. However, this is exactly the top limit of the NVIDIA market today after a staggering more than 35,000%increase.
I do not expect Nvidia to keep this growth rate over the next 10 years. But here’s my forecast how much GPU manufacturer’s stock could increase by 2035.
Image Source: NVIDIA.
Before we start the forecast, let’s look at the extremely optimistic NVIDI scenario. James Anderson, a technology investor and a former partner of investment management company Bailye Gifford, believes it is possible to be almost worthy of almost worth 50 trillion USD By 2035
Recognized, Anderson explained Financial times Last year, when he did not predict Nvidia, it will actually grow. He thought the likelihood of the top $ 50 trillion dollars approaching the company’s market is 10% to 15%.
How could Nvidia have done this deed? Anything that has to happen is artificial intelligence (Ai) to give customers and NVIDIA to maintain its example AI chips technology, says Anderson.
If Anderson is right, the numbers work. The real growth of AI chips in demand was at least 60%annually. If Nvidia continues to enjoy growth level with similar profit margins he had in the past, its shares could be traded by $ 20,000 in 2035. (Without giving up potential shares). This means that the top boundary of the market is $ 49 trillion.
I emphatically do not predict that 2035 The NVIDIA estimation will be about $ 50 trillion. Why? I do not think that in the next 10 years AI chips will continue to grow at the same speed as it had in recent years.
However, I am, however, because of Nvidia prospects. I absolutely hope that two Anderson phenomenal growth conditions will be met. AI should provide a high return on investment to customers in the future. NVIDIA is likely to remain the best AI chip player.
Despite the fact that the debut of agents so far is a little weak, I believe that we will see significant improvements over the next few years. I am such that agent AI will eventually carry out their promise, and organizations that use technology that implement huge improvements.
Several companies created AI chips. But I think the rate of innovation in NVIDIA will allow her to remain in front. And the demand for artificial general intelligence (Ai), the highest to chips.
In this context, the average annual 20% growth rate nvidia looks real. I predict that if the shares increase this level of growth over the next 10 years, by 2035. The company’s market limit will be about $ 27 trillion. This reflects more than 500%of the stock price increase.
I will easily admit that my forecast can be inflated for Smitherens. There are two most likely ways to happen.
First, Ai growth can slow down significantly. The generative PG could already reach its limits. Future AI progress can only be increasing, as dreams of agi are approaching evaporation.
Second, the advantage of Nvidia over the race can be reduced. Even if the company continues to require the largest market share, other AI chips may become more economical. It is not difficult to imagine a situation where Nvidia margins disappear because it is forced to compete more for the price of its chips.
Can NVIDIA still return investors over the next 10 years if any of these two scenarios occur? Of course. However, by 2035. The company would not be close to $ 27 trillion in business.
However, I don’t think my forecast is too much into the limb. We just have to wait a bit to find out if I’m right.
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Keith speeighs have no position in any of the above shares. Motley fools hold positions and recommend NVIDIA. The Motley fool has a disclosure policy.
Forecast: Here’s how many NVIDIA shares are up to 2035. It was possible to grow initially at The Motley Fool
