A Once-in-a-Decade Investment: This AI Stock Could Soar Nearly 300% by 2030, Says a Wall Street Expert.
Nvidia's stock is remarkably cheap despite the company's dominance in a trillion-dollar market.
A Once-in-a-Decade Investment: This AI Stock Could Soar Nearly 300% by 2030, Says a Wall Street Expert.
Overview
Nvidia (NASDAQ: NVDA) has been a cornerstone of the artificial intelligence boom since OpenAI released ChatGPT in November 2022. The stock has returned 1,340% since January 2023. Yet, it trades around 20 times forward earnings today, near the cheapest valuation in the past decade.
Nvidia is "too cheap to ignore," wrote Morningstar analyst Brian Colello on June 17, adding, "We don't foresee a slowdown in AI demand, and the company's leadership position in the AI infrastructure market remains secure. In turn, we believe the market underappreciates its prospects."
Details
Beth Kindig, lead technology analyst at the I/O Fund, believes Nvidia will be a $20 trillion company by 2030. From its current market capitalization of $5.1 trillion, that prediction implies 292% upside over the next four-and-a-half years, which equates to an annual return of roughly 35%.
Source
Originally published at www.fool.com.
