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Nvidia could soar another 545% by the end of the decade, Phil Panaro predicted.
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The former BCG executive said the company will skyrocket due to the AI revolution and the transition to Web3.
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The stock could also see a “big pop” in 2025 after Blackwell’s launch, he said.
Nvidia is headed for a meteoric rise toward the end of the decade, according to a former consulting executive.
Phil Panaro, a former senior adviser at Boston Consulting Group who also served as CEO of a BCG subsidiary, says the AI chip maker’s stock will hit $800 in 2030. That implies another 545% rise for stocks. shares, which were trading around $122 per share in the middle of the year. -Friday day.
The firm led by Jensen Huang will benefit from the artificial intelligence revolution, as well as the migration from Web2 to Web3, Panaro predicted, referring to the idea that the next era of the Internet will be called blockchain technology.
Those developments could lead to big spending by Nvidia customers, he said, pointing to estimates from Goldman Sachs, Citigroup and Morgan Stanley that Web3 could drive trillions of added value into the market.
“Nvidia is driving all accelerated computing, to make that happen, so they will have a big part of that,” Panaro said in an interview with Schwab Network on Thursday. He later estimated that the company’s revenue could increase 10-fold, from $60 billion in the last fiscal year to $600 billion in 2030.
Investors may not have to wait long to see some of those gains. Panaro sees a “big pop” in the stock after Nvidia launches Blackwell, its next-generation artificial intelligence chip, although he did not specify his near-term price target.
“I don’t want to sound overconfident; it’s actually inevitable as long as they can keep making these chips,” he later added of the company’s growth potential. “The penetration of AI in the economy right now is literally less than 1%. So you still have all the corporations, the cities, the municipalities, the governments and the military, who are going to spend money to make sure they take advantage of AI effectively. So there’s still tons of money to spend.”
Some strategists have been skeptical about the rally for Nvidia, whose shares have risen a monstrous 2,733% over the past five years. Analysts have attributed some of that growth to “hyperscalers,” a small group of big tech companies that buy Nvidia chips in large quantities.
But despite concerns that those customers will eventually drop out, the small group of buyers is actually a good sign that Nvidia’s business will grow, Panaro said.
“Actually, that’s the best argument for why it’s going to increase. Because if you look at all the other customers that they’re not reaching, there are 490 other Fortune 500 companies that really haven’t adopted AI to the fullest because they don’t “I don’t understand it. You have all these cities and governments that are going to remake their entire infrastructure from Web2 to Web3, and then you have the AI arms race, with countries and their militaries, which Nvidia hasn’t penetrated part of yet,” he said. Panaro.
He continued: “Stocks can go to the moon, essentially, as long as they deliver.”
Panaro’s prediction rests on the edge of the forecasters, but Wall Street is generally optimistic about the chipmaker’s stock, which has risen 152% since the beginning of the year. Analysts have issued an average price target of $152 per share, according to Nasdaq data, implying an upside of about 25% from current levels.
Read the original article on Business Insider