Nvidia Poised for Market Breakthrough: Analyst Predicts Potential $6 Trillion Valuation
Currently trading at a forward PE of around 50 times, Nvidia's stock price has seen a remarkable rise, up more than 170% year-to-date, standing at $131 per share.
Nvidia (NVDA) is being closely watched by investors as predictions surface about its potential market cap doubling by the end of the year. Eric Jackson, founder and president of EMJ Capital, shared his bold forecast on Yahoo Finance's Opening Bid podcast, suggesting that Nvidia could see its market cap soar to $6 trillion from its current $3.25 trillion.
Jackson attributes this potential surge to upcoming strong earnings reports in August or November, driven by robust demand for Nvidia's H100 and H200 chips, along with the anticipated release of its new AI-focused Blackwell chips. This aligns with comments from Nvidia founder Jensen Huang, who noted significant demand trends earlier this year.
Currently trading at a forward PE of around 50 times, Nvidia's stock price has seen a remarkable rise, up more than 170% year-to-date, standing at $131 per share. Jackson believes that investor enthusiasm could push the stock back to 65 times forward earnings, potentially reaching $250 per share.
Despite recent fluctuations and Nvidia losing its position as the world's most valuable company to Apple and Microsoft, the company continues to show strong performance indicators. KeyBanc analyst John Vinh highlighted sustained demand for H100 chips and higher-than-expected interest in the GB200 series.
However, not all analysts share the same optimism. Pierre Ferragu of New Street Research recently downgraded Nvidia to Neutral, citing valuation concerns and limited further upside. Additionally, competition in the AI chip market remains a challenge, as noted by Goldman Sachs asset manager Brook Dane.
As Nvidia prepares for its earnings reports, the market eagerly awaits to see if Jackson's predictions will come to fruition, potentially marking a seismic moment for the tech giant.
