Nvidia’s money-making train has just left the station, according to veteran tech investor Eric Jackson. “I’m saying like it [Nvidia’s value] could double again between now and the end of the year,” Jackson, founder of EMJ Capital, shared on Yahoo Finance’s Opening Bid podcast.
Jackson envisions Nvidia’s market cap soaring to $6 trillion by year-end, up from its current $3.25 trillion.
Jackson believes Nvidia will hit this milestone by delivering robust business earnings reports in August or November, showcasing sustained demand for its H100 and H200 chips, and hinting at the potential of its new AI-focused Blackwell chips.
This projection aligns with Nvidia founder Jensen Huang’s earlier comments on strong demand trends.
If Nvidia’s earnings meet expectations, Jackson predicts investors will pay a higher price-to-earnings (PE) multiple for its stock. Nvidia already trades at a forward PE of about 50 times, nearly double the broader market multiple.
“I don’t know if it’s going to be August [earnings], I don’t know if it’s going to be November [earnings], but I think there is going be this euphoric reaction. And if so, the stock goes back to 65x forward earnings and you’re there at like $250 per share,” he added.
Nvidia shares currently trade at $131, up more than 170% year-to-date.
This year has been marked by milestones for Nvidia. On June 18, its market cap hit a staggering $3.34 trillion, briefly surpassing Microsoft to become the world’s most valuable company.
Before that, Huang unveiled the powerful Blackwell chips and announced Nvidia’s venture into building AI factories. Though Nvidia has since lost its top spot to Apple and Microsoft, it still commands significant market attention.
KeyBanc analyst John Vinh highlighted two positive takeaways for Nvidia: continued robust demand for H100 chips and higher-than-expected interest in GB200.
However, not all are bullish on Nvidia. New Street Research analyst Pierre Ferragu recently downgraded his rating to Neutral, citing valuation concerns and limited upside based on supply chain conversations.
Ferragu warned that the bull case for Nvidia might not materialize beyond 2025, potentially putting expectations at risk.
Moreover, Nvidia’s success story is attracting fierce competitors. Goldman Sachs asset manager Brook Dane cautioned about the inevitable competition in the chip market.
In a year marked by soaring stock prices and groundbreaking announcements, Nvidia’s journey to $6 trillion remains a compelling story to watch.
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