With 2024 coming to an end and 2025 just around the corner, investors and analysts are increasingly interested in what lies ahead for the stock market, as well as other assets and technologies.
Given the circumstances, it is not surprising that Nvidia (NASDAQ: NVDA) is the focus of many discussions, considering it is one of the best-performing stocks of the year and the past two years.
Phil Panaro of the Boston Consulting Group has perhaps made the most ambitious long-term prediction for NVDA stock price. During an appearance on the Schwab Network, he stated that the semiconductor giant will grow to a truly enormous size by the beginning of the next decade.
Specifically, Panaro believes that Nvidia is likely to reach a market capitalization of $8 trillion by 2030. Assuming the number of shares remains stable in the next five years, this would mean that NVDA stock would be traded at $326.09.
Can Nvidia really achieve an $8 trillion market cap by 2030?
While this goal may seem ambitious, it is worth noting that it represents a relatively modest increase of 141.3%. This is especially modest when considering that NVDA shares have already increased by 180.55% year-to-date and 824.98% over the past two years.
According to Phil Panaro, Nvidia has experienced significant revenue expansion this year, with an $8 billion increase in 2024 compared to 2023.
If current market trends and the chipmaker’s dominance in the industry continue, it is likely that the semiconductor giant will continue to accelerate its growth and achieve $600 billion in annual revenue by the end of this decade.
Although many analysts are more conservative in their assessment of Nvidia’s growth potential, Panaro is not the only one who believes in the possibility of massive expansion.
For instance, Danish Saxo Bank recently included a prediction that Nvidia will reach a valuation of $7 trillion in 2025 among its bold predictions.
However, it is important to note that these predictions are considered “outrageous” for a reason, and stocks tend to slow down their growth after experiencing significant and prolonged rallies.
Furthermore, for Nvidia to meet the 2030 price target, it would be crucial for the artificial intelligence (AI) boom to continue, for the chipmaker to maintain its dominant position in the industry, successfully navigate potential trade wars, and withstand any other challenges that may arise in the coming years.
