Top Technology Investor: Within ten years, NVIDIA's market value could reach $50 trillion
Renowned investor James Anderson predicts that if the annual growth rate of AI chip demand in data centers can be maintained at around 60%, NVIDIA's market value could reach $49 trillion in the next decade. The probability of this outcome occurring is 10%-15%
Recently, renowned investor James Anderson stated in an interview that the global NVIDIA's market value could reach $50 trillion in the next ten years, surpassing the total market value of all companies in the current S&P 500 index.
Anderson pointed out that this possibility is based on the successful application of artificial intelligence technology and NVIDIA's continued leading position in the market.
Due to the surging demand for chips for generative artificial intelligence models (such as OpenAI's ChatGPT), NVIDIA's stock price has soared by 162% this year, with its market value surpassing $3 trillion. This is a 20-fold increase from around $150 billion in August 2018. In June this year, NVIDIA briefly surpassed Microsoft and Apple to become the world's most valuable listed company. NVIDIA's CEO Jensen Huang stated that the company is at the center of a new "industrial revolution."
Anderson mentioned that NVIDIA's competitive advantages in hardware and software, as well as the company's unique culture and leadership, are key factors that have positioned it prominently in the industry.
He recalled that when he first bought NVIDIA stock in 2016, he was "not sure what its main driver was." However, after years of observation and investment, he found that "unlike other successful investments, NVIDIA was a high-profit and dominant company from the beginning." He predicts that if the annual growth rate of data center AI chip demand can remain around 60%, NVIDIA's market value could reach $49 trillion in the next ten years. The probability of this outcome is 10%-15%.
Although Anderson expects NVIDIA to experience a 35-40% stock price correction in the future, he believes that such fluctuations are a normal phenomenon in market development and intends to continue increasing holdings during corrections.
Furthermore, Anderson is confident in the future of generative AI, believing it has enormous potential in areas such as autonomous driving, robotics, and drug discovery.
NVIDIA firmly maintains a leading position in supporting and providing these areas