Phil Panaro of Boston Consulting Group predicts that Nvidia (NVDA, Financial) could hit an $800 share price by 2030. According to Panaro, NVIDIA's amazing growth path included reaching $35 billion in quarterly revenue, more than $8 billion over its full 2023 earnings. He claims the company would generate $600 billion in revenue a year in the decade, which is in line with the anticipated price target.
No one has truly dominated the artificial intelligence (AI) space besides NVIDIA. However, analysts warn that high growth is unlikely to continue as growth normalizes. Gross margins have nosedived from 78% to 74.5% over two quarters, though some question how sustainable that development will eventually remain.
There's also a chance that competition will arrive on the horizon. Last month, Amazon (AMZN, Financial) announced its Trainium 3 chip, which will arrive late in 2025 and will double its performance while improving power efficiency by 40% by using Taiwan Semiconductor Manufacturing Company's (TSM, Financial) state-of-the-art N3 technology. Apple (AAPL, Financial) is also expected to climb a steep learning curve that will ensure a major consumer of this new chip, further intensifying competition.
NVIDIA, however, remains a Wall Street darling. Its long-term outlook seems promising, with 193 hedge fund investors having a bet on the stock and an 'AI (artificial intelligence) driven 'fourth industrial revolution' underway. However, investors are also seeking out lesser-known but high-return AI stocks, as Columbia Seligman Global Technology Fund's level-headed commentary on the risks NVIDIA's customer concentration poses.
NVIDIA is both a leader and a symbol of all the work the industry has to do going forward as AI reshapes industries at an unprecedented scale.
