Phil Panaro, Founder and Former CEO of Boston Consulting Group, forecasts that shares of NVIDIA Corporation (NASDAQ:NVDA) could reach $800 by 2030.
Panaro attributes the ongoing artificial intelligence revolution as one of the primary drivers behind the forecast. AI adoption is still in its infancy, and artificial intelligence penetration stands at less than 1% right now. This offers NVIDIA Corporation (NASDAQ:NVDA) a significant advantage. The second driver, which nobody talks about, is the transition from Web 2.0 to Web 3.0. The shift from Web2.0 to Web3.0 is forecast to grow into a $10 trillion market by 2030. As of today, less than $10 trillion is spent on Web 3.0, offering a 10x growth opportunity.
The demand for NVIDIA Corporation (NASDAQ:NVDA) technology is further going to propel considering how Elon Musk and Vivek Ramaswamy have started the Department of Government Efficiency. Known as the Second Manhattan Project, it’s going to eliminate waste and optimize infrastructure. Musk’s expertise as a pioneer in autonomous vehicles positions him as an ideal candidate to drive advancements in applying autonomous technology to areas like bridges and buildings. Ultimately, Nvidia stands to be the prime beneficiary of this government modernization.
Nvidia’s competitive moat lies in its end-to-end AI ecosystem, anchored by industry-leading GPUs, proprietary CUDA, networking, and the Omniverse platform. Despite its dominance, Nvidia has only penetrated 1% of the market, with 40% of its revenue coming from hyperscalers. This leaves a vast opportunity among enterprises, cities, and governments, all of which will increasingly rely on GPUs to drive AI adoption.
With artificial intelligence still in its infancy and an AI arms race underway, Nvidia stands dominant and will most likely penetrate them all.
Our research director shared his views on NVDA’s earnings results here. He thinks NVDA stock can reach $170 within 3 months. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.