Chipmaker Nvidia could be worth nearly $50 trillion in a decade, according to one of tech's most successful investors.
James Anderson's forecast puts the company at a level greater than the current combined market cap of the entire S&P 500 index.
Anderson, known for his early bets on the likes of Tesla and Amazon, adds:
The potential size of Nvidia in the most optimistic outcome is much higher than I've seen before, and could lead to a market cap of trillions of dollars.
This is not a prediction but a possibility if AI succeeds in serving customers and Nvidia's progress remains intact.
Nvidia has been a major beneficiary of the boom in demand for chips that can train and run powerful generative AI models like OpenAI's ChatGPT.
Nvidia, whose CEO Jensen Huang has declared the company at the heart of a new industrial revolution, briefly surpassed Microsoft and Apple in June to become the world's most valuable listed company.
Its shares have risen more than 137% since the start of the year (after Friday’s last close), pushing the chipmaker’s market value to (and briefly breaking through and then back below) the $3 trillion mark, about 20 times the roughly $150 billion the company was valued at in August 2018, when Apple became the first company to reach a $1 trillion valuation.
“The company’s continued progress, competitive advantages in hardware and software, culture and leadership are exactly what we look for,” said Anderson, who last year teamed up with Italy’s Agnelli family holding company to launch Lingotto Investment Management, where he manages a $650 million fund whose largest position is in the U.S. chipmaker.
