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Nvidia could grow another 545% by the end of the decade, Phil Panaro predicted.
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The former BCG executive said the company will rise as a result of the AI revolution and the transition to Web3.
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The stock could also see a “massive boom” in 2025 after Blackwell’s release, he said.
Nvidia is heading for a meteoric rise by the end of this decade, according to a former consulting executive.
Phil Panaro – a former senior advisor at the Boston Consulting Group who was also CEO of a BCG subsidiary – says the AI chipmaker’s shares will reach $800 by 2030. That implies another 545% upside for the stock, which was trading around $122 per share at the midpoint. -day Friday.
The Jensen Huang-led company will benefit from the revolution in artificial intelligence, as well as from the migration from Web2 to Web3, Panaro predicted, referring to the idea that the next era of the Internet will be characterized by blockchain technology.
These developments could result in big spending from Nvidia’s customers, he said, citing estimates from Goldman Sachs, Citigroup and Morgan Stanley that Web3 could bring trillions in added value to the market.
“Nvidia is driving all the accelerated computing to make that happen, so they’re going to get a big piece of that,” Panaro said in an interview with Schwab Network on Thursday. He later estimated that the company’s revenue could increase by a factor of 10, from $60 billion last fiscal year to $600 billion by 2030.
Investors may not have to wait long to see some of those gains. Panaro foresees a “huge explosion” in the stock price after Nvidia releases Blackwell, its next-generation AI chip, although he did not specify his near-term price target.
“Not to sound too confident, it’s actually inevitable, provided they can keep making these chips,” he later added about the company’s upside potential. “The penetration of AI in the economy is literally less than 1% right now. So you still have all the companies, the cities, the municipalities, the governments, the military, that are going to spend money to make sure that they can use AI effectively. So tons of money still needs to be spent.”
Some strategists are skeptical of Nvidia’s rally, which has seen the stock rise a monstrous 2,733% over the past five years. Analysts have attributed some of that growth to “hyperscalers,” a small group of large technology companies that buy Nvidia’s chips in bulk.
But despite concerns that these customers could eventually pull out, the small pool of buyers is actually a good sign that Nvidia’s business will scale, Panaro said.
“That is actually the best argument why it will actually increase. Because if you look at all the other customers that they’re not reaching, there are 490 other Fortune 500 companies that haven’t really fully adopted AI because they don’t. You don’t understand. You have all these cities and governments that are going to redesign their entire infrastructure from Web2 to Web3, and then you have the AI arms race, with countries and their militaries, that Nvidia is causing. has not yet penetrated for the most part,” Panaro said.
He continued: “The stocks could basically go to the moon, provided they yield.”
Panaro’s forecast leans toward the extremes of the forecasters, but Wall Street is generally bullish on the chipmaker’s shares, which are up 152% since the start of the year. Analysts have issued an average price target of $152 per share for the stock, according to Nasdaq data, implying an upside of about 25% from current levels.
Read the original article on Business Insider
