In the past year alone, Nvidia, the leading AI chip company, has experienced a staggering growth of over 200%, propelling it into the ranks of the world's most valuable companies and positioning it to compete with Microsoft and Apple. However, Beth Kindig, the lead tech analyst at the I/O Fund, anticipates even more astronomical gains in the years ahead, forecasting that Nvidia's market capitalization will surge by an additional 270% to reach $10 trillion. At present, the company is valued at around $2. 7 trillion. During an interview with CNBC on Tuesday, Kindig highlighted Nvidia's pivotal role in powering AI infrastructure. Its chips, which are in high demand for data centers responsible for training large language models, along with the upcoming release of its more advanced Blackwell chips expected later this year, are poised to outperform their predecessors, the Hopper chips. Not only does Nvidia possess an advantage in hardware, but its software also contributes to its edge. Kindig also noted that the automotive industry will contribute further growth to the company. "We have a lot coming, " Kindig stated. "This is just the beginning for Nvidia, and there are multiple layers to explore. " While competitors like AMD and Intel have also made optimistic projections about the AI market, Kindig believes that Nvidia will capture the majority of the market share.

She added that other tech giants that develop their own chips typically do so to optimize their own applications and usually do not commercialize the chips like Nvidia does. On the software front, Kindig drew comparisons between Nvidia's CUDA platform and Apple's iOS operating system, which played a crucial role in establishing the dominance of the iPhone. "A similar phenomenon is unfolding with Nvidia, as the CUDA platform has become the primary programming method for software and AI engineers working with GPUs, " Kindig explained. "This creates a lock-in effect. Consequently, the combination of factors has created what I would describe as an impenetrable moat. " Kindig has reiterated her previous forecast, made earlier this year, of Nvidia reaching a $10 trillion valuation by 2030. Since then, Nvidia has reported strong fiscal first-quarter earnings that surpassed Wall Street expectations, further solidifying the momentum surrounding AI. Nvidia's CEO, Jensen Huang, commented on the shift happening in the industry, saying, "The next industrial revolution has begun. Companies and countries are partnering with Nvidia to transform the trillion-dollar installed base of data centers for accelerated computing, and to create a new breed of AI factories, forming a new commodity: artificial intelligence. "