KUALA LUMPUR: An early investor in Amazon and Tesla, James Anderson, told Financial Times (FT) he believes Nvidia Corp's value could jump more than 16-fold to US$50 trillion in a decade, on the strength of customers demand for its artificial intelligence (AI) chips.
AI chipmaker Nvidia currently has a market capitalisation of US$3.1 trillion. "The potential scale of Nvidia in the most optimistic outcome is both way higher than I've ever seen before and could lead to a market cap of double-digit trillions," Anderson told The FT, according to news portal Quartz. "This isn't a prediction but a possibility if artificial intelligence works for customers and Nvidia's lead is intact."
According to Quartz, Anderson runs a US$650 million fund that counts Nvidia as its largest position.
Year-to-date Nvidia's stock price has gone up 155 per cent. It last traded at US$125.92 a share.
At a market capitalisation of US$50 trillion, Nvidia would have to trade at more than US$20,000 a share.
The world's most valuable company Microsoft Corp, last traded at US$449.52 a share, giving it a market capitalisation of US$3.34 trillion.