The brilliant analyst who was years ahead of Wall Street with an absurd forecast for Nvidia?
$NVDA Pay attention, friends
Nvidia's report yesterday surprised many investors – we too were surprised by the monstrousness of this company
But there is one person who was not surprised – she presented these estimates long before the market, and not only that, she has an interesting forecast for what, according to her, is going to happen by the end of the decade?
Nvidia stock closed yesterday around $185 per share – according to her personal estimate, she talks about a price of about $800 per share by 2030
If this happens, it would be historically exceptional, because it reflects a market cap of $20 trillion compared to a market cap of $4.5 trillion today
She is one of the most respected analysts on Wall Street, she manages a hedge fund with an average return of 27 percent since its inception!
Meet Beth Kindig
In 2023, she allocated 46% of her portfolio to chip stocks, long before anyone saw it coming...
It's not for nothing that Wall Street calls her 'the Nvidia woman'.
Regarding Nvidia's artificial intelligence story – can it be said that she identified some of the current trends relatively early?
For example – in an article she wrote in September 2019, she wrote that Nvidia would become one of the most valuable companies in the world, when at that time it was valued at only $110 billion (it has now risen 40-fold).
She also publicly stated, although at the time it sounded quite ridiculous, that Nvidia would surpass Apple when Nvidia had only a fifth of Apple's market cap – $550 billion compared to Apple, which was valued at $2.5 trillion.
This is how she summarized her article at the time:
"The conclusion to my analysis is the same as the introduction, and that is that I believe Nvidia is capable of outperforming all five FAAMG stocks and will even exceed Apple's valuation in the next five years."
And Nvidia? has risen 8-fold since that analysis, and of course surpassed Apple's market cap, quite some time ago it must be said.
Last year, when Nvidia stock was valued at $3 trillion, she predicted the stock would reach a market cap of $10 trillion by 2030...
This forecast, which at the time sounded completely absurd, is now perceived by some investors as less extreme after Nvidia recently reached a record market cap of $5 trillion.
And today, with this track record, she claims that a re-evaluation she conducted, on the company's product pace, the value of its software division, and the tremendous growth of artificial intelligence systems, she presents a new analysis, with a valuation of $20 trillion by 2030.
It's not possible to go into all the details of the analysis – whoever wants to delve deeper will find it right here
Her background makes her analysis interesting for those who follow the field
To know if she was right, we will have to wait until 2030.