Nvidia will grow to a $10 trillion company and the Blackwell chip will be like ‘fireworks’ for the stock, analyst says

• Analyst Beth Kendig says Nvidia is on track to reach a $10 trillion valuation.

• Kendig expects strong growth and “fireworks” for the stock after its launch at Blackwell.

• Jensen Huang assured investors that Nvidia’s next-generation AI chip will generate billions of dollars in revenue.

Nvidia is on track to more than triple its market value, according to Beth Kendig, lead tech analyst at the I/O Fund.

Speaking to Yahoo Finance on Thursday, Kindig said she expects Nvidia to achieve a $10 trillion valuation over the long term. That would mean a huge windfall for the $2.9 trillion AI giant, Kindig said, largely due to strong expected growth and gains from its next-generation AI chip, dubbed Blackwell.

Wall Street investors are becoming concerned that Nvidia is overvalued, given its massive run-up over the past year and investor expectations. Huge expectations In the wake of earnings growth, Nvidia shares fell more than 6% on Thursday after the company announced beat profits For the second quarter, albeit narrower than previous quarters.

Investors also expressed concerns about Nvidia’s Blackwell chip after industry analysts reported that The launch of the chip will be postponed. Two to three months due to “major problems in reaching high production volumes.”

Kendig said Nvidia’s results were “impressive” though, and were enough to calm investors’ concerns ahead of the earnings announcement.

Jensen Huang, CEO of NVIDIA He defended Blackwell’s progress in a recent interview. According to Bloomberg, the company made a “sweeping change to improve yield” and was looking to generate “billions of dollars” in revenue from the next-generation chip.

“That’s why things are revised upwards and never revised downwards,” Kindig said of Nvidia’s estimates, adding that she remains optimistic about Blackwell’s upcoming release. “They say Blackwell is basically on schedule. Blackwell is not a concern. If anything, it’s very bullish.”

Kendig expects Nvidia’s growth trajectory to become clearer once Wall Street analysts revise their financial estimates for next year. That should be a “big moment” for Nvidia, followed by Blackwell’s shipment numbers in 2025.

“It will be fireworks, as I put it. The absolute fireworks for Blackwell will come in the first quarter, with the second quarter as a guide,” Kindig said. “Early next year will be fireworks again for Nvidia, and we will be on track to hit $10 trillion.”

The story continues

Kendig’s outlook for the chipmaker is among the most bullish, though Wall Street remains bullish on the chipmaker. Analysts have issued an average price target of $151 per share, Nasdaq The data indicates another 27% rise for the stock over the next 12 months.

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