1 AI stocks could be worth more than Apple, Microsoft, Amazon and Tesla combined by 2030, Wall Street analyst says

Beth Kindig, technology analyst at I/O Fund, thinks Nvidia (NASDAQ:NVDA) will ride the artificial intelligence (AI) boom to reach a valuation of $10 trillion by 2030. If this prediction proves correct, the semiconductor company would be worth more than what it Apple, Microsoft, AmazonAnd Tesla are currently worth combining.

Kindig’s prediction implies a substantial upside for Nvidia shareholders. The company’s current market value of $3.5 trillion is expected to increase 185% to $10 trillion. Achieving this goal by 2030 would result in the stock price appreciating 19% per year over the next six years.

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Of course, investors should never place too much emphasis on price targets (no pun intended), but Nvidia deserves closer attention because of its strength in AI.

Nvidia participates in several areas of the booming AI economy

Nvidia has 98% market share for data center graphics processing units (GPUs), chips that accelerate complex tasks such as training large language models and running artificial intelligence (AI) applications ). Therefore, despite competition from technology companies like Alphabet and other chip makers like AMDNvidia GPUs are the de facto standard in AI accelerators.

Nvidia began laying the foundation for this dominance by introducing its CUDA programming model in 2006. CUDA has become an unprecedented ecosystem of software development tools allowing programmers to write GPU applications. Nvidia further solidified its leadership by expanding into adjacent data center hardware verticals, including central processing units (CPUs) and networking equipment specifically designed for AI.

In short, Nvidia participates in many different parts of the burgeoning AI economy. Its ability to innovate in hardware and software is a key advantage because it allows the company to design data center systems with a higher total cost of ownership, according to CEO Jensen Huang. In other words, Nvidia GPUs are arguably cheaper (despite higher prices) than competing chips when you take direct and indirect costs into account.

Nvidia’s Blackwell GPUs could be an important catalyst in the near term

Nvidia reported strong financial results in the second quarter of fiscal 2025, which ended in July 2024, beating estimates on both the high and low ends. Total revenue increased 122% to $30 billion, driven by particularly strong momentum in the data center segment. Meanwhile, non-GAAP earnings rose 152% to $0.68 per diluted share. Management also gave better guidance than Wall Street expected, projecting revenue growth of 80% in the third quarter.

Importantly, Nvidia has a major catalyst on the horizon with the launch of its next-generation GPU, Blackwell, which delivers up to four times faster AI training and 30 times faster AI inference than the previous Hopper architecture. Blackwell’s production ramp-up began in the fourth quarter (i.e. the current quarter) and will continue through fiscal 2026.

Earlier this year, CEO Jensen Huang predicted that Blackwell would be “the most successful product” in the company’s history, and perhaps in the entire history of computing. Several Wall Street analysts are equally optimistic about the next-generation chip. Blayne Curtis of Jeffries wrote in a recent note to clients: “Nvidia continues to experience unprecedented demand that far exceeds even its rapidly expanding capacity. »

Similarly, Piper Sandler’s Harsh Kumar estimates that sales of AI accelerators will increase by $70 billion in 2025, and he thinks Nvidia will capture most of that additional spending as companies compete for Blackwell chips. Additionally, Kumar recently mentioned that Nvidia “has historically surprised the Street on the upside during the early stages of product launches.”

With any luck, Nvidia could become a $10 trillion company by 2030.

Looking ahead, AI accelerator sales are expected to grow 29% annually through 2030, while spending on AI hardware, software and services is expected to grow 37% annually over the same period. period. Nvidia is perhaps the company best positioned to capitalize on this opportunity due to its participation in many parts of the AI ​​economy.

However, Nvidia also has an adjacent opportunity as data centers move from general purpose computing to accelerated computing. Jensen Huang believes every data center will deploy GPUs in the future, and he expects cumulative spending to total $1 trillion over the next four to five years. Part of that spending will be on data center accelerators, so sales will grow 25% annually through 2030, according to Grand View Research.

Wall Street expects Nvidia’s adjusted earnings to grow 37% annually through fiscal 2027, which ends in January 2027. That estimate makes the current valuation of 66 times adjusted earnings look like is right. And if Nvidia maintains a similar trajectory, such that its earnings grow 31% annually over the next six years, its market value will reach $10 trillion by mid-2030, while its valuation will fall to 37 times earnings .

The market is currently offering Apple a multiple of 37 times earnings, so it seems reasonable to assume that Nvidia will be priced similarly. That said, there’s no doubt that Nvidia will need near-perfect execution and a bit of luck to reach the $10 trillion mark by 2030. Either way, investors should consider buying a small position today.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Trevor Jennevine holds positions at Amazon, Nvidia and Tesla. The Motley Fool holds positions and recommends Amazon, Apple, Microsoft, Nvidia and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

1 AI stocks could be worth more than Apple, Microsoft, Amazon and Tesla combined by 2030, Wall Street analyst says, originally published by The Motley Fool