What you need to know
- Analyst says NVIDIA's stock will surge 258% from current levels and predictably hit a $10 trillion market valuation by 2030, potentially taking Apple's position as the world's second most valuable company.
- NVIDIA's next-gen Blackwell GPU chips will reportedly prompt immense growth for the company alongside its CUDA software platform.
- Apple will reportedly join the AI fray during its WWDC 2024 developer conference after signing a deal with OpenAI to bring ChatGPT to the iPhone.
NVIDIA is well-known for manufacturing GPUs and chip systems used in vehicles, robotics, and (most recently) AI advances. Many corporations are hopping onto the AI train, and most are emerging successful in the category. For instance, Microsoft is now the world's most valuable company ahead of Apple with over $3 trillion in market capitalization.
Market analysts attribute Microsoft's immense success to its early and heavy investment in OpenAI technology. The tech giant's latest earnings call reflects similar sentiments. Analysts project that Microsoft is on the brink of reaching its iPhone moment with AI. As it happens, NVIDIA might be on the same trajectory. I/O Fund tech analyst Beth Kindig says NVIDIA's stock will surge 258% from current levels and predictably hit a $10 trillion market valuation by 2030 (via Business Insider).
NVIDIA's success can be attributed to the vast number of companies rushing to join the AI fray and depending on the company for chips to further their AI advances. As we speak, NVIDIA is currently the third-most valuable company in the world with 2.67 trillion in market capitalization, a few $100 billion to surpass Apple's 2.92 trillion.
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As you may know, Apple has been playing it safe and is now a tad late to the AI party. However, a recent report indicates Apple has signed a new deal with OpenAI to bring its technology advances, including ChatGPT to the iPhone via the long-anticipated iOS 18 update (though most of these features will reportedly work on the iPhone 15 Pro or later).
It remains unclear how this play will help the iPhone's depressed sales, especially in the Chinese market. Likewise, Microsoft, OpenAI's largest investor is worried about the newly-found partnership between Apple and OpenAI. The company's CEO Satya Nadella is reportedly concerned about the future of Microsoft products and services with AI.
Blackwell GPUS and CUDA software platform are gold for NVIDIA
Kindig says NVIDIA's next-gen Blackwell GPU chips will prompt immense growth for the company alongside its CUDA software platform. Blackwell GPUs hold the potential to surpass the success NVIDIA enjoyed through the H100 and will generate up to $200 billion in revenue by the end of NVIDIA's fiscal year 2026.
While speaking to CNBC, the analyst indicated:
"Blackwell will empower and enable trillion-plus large language models, which is exactly where big tech is trying to go. Those components altogether equal a very large hardware data center segment, then we have software coming... and then the third one is automotive, so we have a lot coming. This is very, very early for Nvidia."
Last year, NVIDIA was named the world's most profitable semiconductor chip brand due to the rise in demand for AI GPUs with Meta and Microsoft as its A-list clients, placing it ahead of Intel and Samsung. At the time, its revenue for Q3 2023 stood at $18.12 billion with $10.42 billion in profits, translating to a 206% year-over-year increase.
