Nvidia (NASDAQ: NVDA) has ranked among the best performing stocks in the S&P 500 for the past two years, with its stock price skyrocketing 400% during that time. As a result, Nvidia’s market capitalization stands at $653 billion, making it the largest semiconductor company in the world. Even so, Nvidia still lags Appleis valued at $2.8 trillion by a wide margin, but that could change over the next decade.
In this Backstage Pass video, recorded on January 4, Motley Fool contributor Jose Najarro, explains why Nvidia could be the world’s most valuable company in 10 years.
Jose Najarro: I believe that in the next 10 years, the one who will hold the crown of the biggest will probably be Nvidia.
For me, Nvidia, the overall growth that this company can see, for me, especially in artificial intelligence. If one of the markets it’s in is artificial intelligence, cybersecurity, healthcare, metaverse, and self-driving, one of those markets can really take off, and if any of them is a big winner, I think Nvidia can take the crown from Apple in the next 10 years.
Imagine a world where you can find the perfect amount of drug sequencing with artificial intelligence powered by Nvidia graphics and software. For me, Nvidia is probably one of those players that will hold the crown. Right now, it’s primarily a gaming company, as we can see that most of the revenue comes from gaming, followed by the data center. I believe that in the next two or three years, this will change. Gaming will no longer be Nvidia’s main driver, it will be data center or quite possibly some other segment entirely called something like software solutions would be the biggest player for Nvidia. For the next decade, that would be my choice.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.