Nvidia’s (NVDA) revenue can surge tenfold from here and hit $1 trillion by the end of the decade, said analysts at Fundstrat Global Advisors.
“Nvidia’s revenue could be a trillion dollars by the end of the decade and Nvidia’s revenues are $100 billion right now. So Nvidia (NASDAQ:NVDA) itself can be a 10x,” the analysts mentioned in an interview with investing journalist Natalie Brunell.
The comments come in response to a question about the previous prediction that the S&P 500 could surge as high as 15,000 by 2030.
They explain that the world is running out of prime-age workers, leading to a shift where wages are increasingly paid to companies that produce automated solutions. This trend could funnel nearly $4 trillion annually into the S&P 500 by 2030, the analysts noted.
They brought up the 2008 financial crisis as a historical reference, highlighting how S&P earnings rebounded from $60 to $280 per share in 14 years, despite initial skepticism from some analysts. They believe similar growth is achievable due to demographic shifts and increased automation spending.
"S&P earnings are going to be over $1,000 per share in the near future," they stated.
As companies like Nvidia capitalize on AI, their revenues could soar, reflecting the broader economic shift from human labor to machine output. The analysts emphasize the importance of looking at long-term trends, noting that past predictions often underestimated the market's potential for recovery and growth.
Nvidia continues to be one of the biggest drivers of the stock market's ongoing bull run, with the chipmaker's shares surging nearly 150% since the start of 2024. That marks a broad outperformance compared to the S&P 500, which added 16.5% during that period.