1 Artificial Intelligence (AI) Stock to Buy Before It Soars to $10 Trillion, According to a Wall Street Analyst (Hint: Not Apple)

A bold prediction from a seasoned Wall Street analyst suggests one artificial intelligence (AI) stock could reach a staggering $10 trillion market capitalization by 2030. While not Apple, this company is already a giant in the tech world: Nvidia (NVDA).

The Analyst's Track Record

Beth Kindig, lead technology analyst at the I/O Fund, has an impressive history with Nvidia. She correctly predicted the company would surpass Apple's market value years ahead of consensus. More recently, she accurately identified a buying opportunity when the stock saw a temporary dip.

Now, Kindig's most ambitious call is that Nvidia will grow from its current market value of around $3.9 trillion to $10 trillion by the end of the decade. This implies a potential upside of 156%, translating to annual returns approaching 19% for shareholders.

Dominance in AI Infrastructure

Nvidia is synonymous with Graphics Processing Units (GPUs), essential chips for accelerating demanding data center tasks like training AI models. The company commands over 90% market share in this critical segment.

Beyond GPUs, Nvidia's ecosystem includes CPUs, interconnects, and leading networking platforms like Ethernet and InfiniBand. They are the market leader in generative AI networking, supplying infrastructure to tech giants including Google and Meta Platforms.

Growth Trajectory

Industry forecasts reinforce the massive opportunity. The data center GPU market is projected to grow at a 36% annual rate through 2033, while the generative AI networking market is expected to expand by 34% annually through 2028. These trends provide a strong foundation for Nvidia to sustain annual revenue growth exceeding 30% for years.

Beyond Generative AI: The Physical AI Revolution

While generative AI has driven recent demand, the next wave involves 'physical AI' – enabling autonomous machines to interact with the real world. Nvidia is uniquely positioned across the entire computing stack for this revolution.

Their data center solutions train the necessary AI models, their Omniverse simulation engine allows for generating synthetic training data and testing, and their embedded processors provide the on-board intelligence for autonomous robots and self-driving vehicles.

The Impenetrable Moat: CUDA

A major factor solidifying Nvidia's leadership is its CUDA software platform. This comprehensive suite of tools, libraries, and frameworks accelerates the development of complex software for robotics and automotive applications.

This vertical integration simplifies development for engineers and developers, reducing complexity and total cost of ownership. Beth Kindig highlights CUDA as an "impenetrable moat" giving Nvidia a "near-monopoly in building supercomputers."

Valuation and Outlook

Nvidia's recent financial performance has been exceptionally strong, with first-quarter revenue jumping 69% to $44 billion. While earnings growth was affected by export restrictions, Wall Street analysts forecast adjusted earnings to grow at a robust 41% annually through fiscal year 2027.

Considering this rapid growth forecast, the stock's current valuation of around 50 times adjusted earnings appears reasonable. Nvidia has consistently beaten analyst earnings expectations, adding another layer of confidence for investors.

Is Nvidia a Buy?

With a compelling long-term vision driven by AI dominance, strategic vertical integration, and favorable market growth trends, coupled with a valuation that seems aligned with aggressive future earnings forecasts, Nvidia presents a strong case for long-term investors looking to capitalize on the AI revolution.