Nvidia’s (NVDA) stunning success story is attracting hungry competitors — and that could stand in the way of the chip giant’s eventual $10 trillion market cap.
There is very little chance of there being no competition there. [for Nvidia]“Goldman Sachs portfolio manager Brooke Dane told Yahoo Finance’s executive editor: Brian Sozzi In his show “The Opening Show” (watch or listen to the video above) here).
We believe that ASIC [application-specific integrated circuit] “The guys are doing a great job and are likely to build a range,” Danny added.
Danny expects the power of data centers that have the ability to run large language models, which will support ASIC manufacturers that supply the chips needed for data infrastructure.
“We think the market is underestimating how huge the opportunity ASICs present for them,” he said of Marvell (MRVL), one of his fund’s top 10 investments.
KLA Corporation (KLAC), the number one company in his portfolio in terms of specialization, is likely to benefit from global demand in new geographies. The company provides products and solutions for the manufacture of electronic chips and circuits.
Dane also continues to be bullish on Micron (MU) despite the mixed outlook that weighed on the stock last week.
It’s understandable that we’re afraid of missing out on Nvidia right now — and ignoring some of its future competitors.
On June 18, Nvidia’s market cap hit $3.34 trillion, making it the world’s most valuable company — briefly surpassing tech giants Microsoft (MSFT) and Apple (AAPL). Nvidia shares are currently trading at 21 times estimated future sales, up from 12 times just two months ago.
Meanwhile, the stock has recently traded about 100% above its 200-day moving average.
In May, Nvidia reported better-than-expected quarterly results, with a host of positive signs for optimists. Nvidia executives predicted that demand for AI chips would continue to outpace supply through 2025.
The company is now starting to build AI factories, Nvidia CEO Jensen Huang told Yahoo Finance’s Julie Heyman and Dean Hawley.
“Now you have software, cars, robotics, and that really pushes us past $10 trillion easily. [market cap for Nvidia] By 2030, said Beth Kendig, lead technology analyst at I/O Fund: Senna Smith And Brad Smith On Yahoo Finance’s morning newsletter.
Dan reminds investors that nothing is guaranteed in the world of technology.
“I would like to pretend that I know exactly where AI is going in the next five years,” he said. “We are all trying to understand and put the pieces together to derive investment theories and actions in our clients’ accounts.”
In an episode of “Opening showBradesco’s chief equity strategist Ben Laidler has made the case that the S&P 500 will return 100% over the next five years. Listen below.
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Correction: A previous version of this article misspelled Marvel’s name. We apologize for the error.
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