Why Nvidia stock could soar over 500% by the end of the decade, former consulting exec says

• Phil Panaro predicted that Nvidia could reach another 545% by the end of the decade.

• The former BCG CEO said the company will rise due to the AI ​​revolution and the move to Web3.

• He said the stock could also see a “huge explosion” in 2025 after Blackwell’s launch.

Nvidia It is on track to rise rapidly by the end of the decade, according to one former consulting executive.

Phil Panaro — a former senior advisor at Boston Consulting Group who also served as CEO of a subsidiary of BCG — says the AI ​​chip maker’s shares will hit $800 by 2030. That would mean another 545% upside for the stock, which traded at about $122 per share in mid-2030. -Friday.

The company led by Jensen Huang will benefit from Artificial intelligence revolutionAs well as migration from Web2 to Web3Panaro predicted, referring to the idea that the next era of the Internet will be characterized by blockchain technology.

These developments could lead to significant spending from Nvidia customers, he said, citing estimates from Goldman Sachs, Citigroupand Morgan Stanley That Web3 could fuel trillions of added value into the market.

“NVIDIA is working on all of the accelerated computing to achieve this, so it will have a large share of that,” Panaro said in an interview with the “Nvidia” website. Schwab Network Thursday. He later estimated that the company’s revenue could multiply by a factor of 10, from $60 billion in the last fiscal year to $600 billion by 2030.

Investors may not have to wait long to see some of these gains. Panaro expects a “huge explosion” in the stock after Nvidia launches Blackwell, its next-generation AI chip, though he did not specify his short-term price target.

He later added of the company’s upside potential: “I don’t sound overly confident — it’s actually inevitable provided they can keep making these chips.” “The penetration rate of AI in the economy right now is less than 1%. So you still have all the companies, cities, municipalities, governments, the military, that are going to spend money to make sure they leverage AI effectively. So there is still a lot of money to be spent.” .

Some strategists have been skeptical about Nvidia’s rise, as the stock has risen a whopping 2,733% over the past five years. Analysts attributed some of this growth to “Over scaling“, a small group of major technology companies buys Nvidia chips in large quantities.

But despite those fears Customers can eventually opt outThe small group of buyers is actually a good sign that Nvidia’s business will expand, Panaro said.

The story continues

“That’s actually the best reason to explain why it’s actually going up. Because if you look at all the other customers that they don’t have access to, there are 490 other Fortune 500 companies that haven’t really adopted AI to the fullest extent because they don’t.” “I don’t get it.” , you have all these cities and governments that are going to rebuild all their infrastructure from Web2 to Web3, and then you have the AI ​​arms race, with countries and their militaries, which Nvidia hasn’t penetrated much. Panaro said.

“The stock can go to the moon, basically, provided it is delivered,” he continued.

Panaro’s forecast is based on forecasters’ maximum expectations, but Wall Street is generally optimistic about the chipmaker’s shares, which have risen 152% since the beginning of the year. Analysts issued an average price target of $152 for the stock, according to Nasdaq data, which implies an upside of about 25% from current levels.

Read the original article on Business insider