Nvidia (NASDAQ:NVDA) has ranked among the best performing stocks in the S&P 500 for the past two years, as its share price skyrocketed 400% over that time period. As a result, Nvidia’s market cap sits at $653 billion, making it the largest semiconductor company in the world. Even so, Nvidia still trails Apple‘s $2.8 trillion valuation by a wide margin, but that could change in the coming decade.
In this Backstage Pass video, recorded on Jan. 4, Motley Fool contributor Jose Najarro explains why Nvidia could be the world’s most valuable company 10 years down the road.
Jose Najarro: I do believe in the next 10 years the one that’s going to hold the crown for the biggest would probably be Nvidia.
To me, Nvidia, the overall growth that this company can see, for me, especially in artificial intelligence. If any of the markets it’s in within artificial intelligence, cybersecurity, healthcare, metaverse, and autonomous driving, any of those markets can really take off, and if any of those are huge winners I believe Nvidia can take the crown from Apple within the next 10 years.
Imagine a world where you’ll be able to find the perfect amount of medicine sequencing because of artificial intelligence powered by Nvidia’s graphics and software. For me, Nvidia is probably one of those players that will hold the crown. Right now, it’s mainly a gaming company as we can see most of the revenue comes from gaming, followed by data center. I do believe within the next two, three years, this is going to flip. Gaming will no longer be the biggest driver for Nvidia, that will be data center or most likely a whole different segment called something like software solutions would be the biggest player for Nvidia. For the next decade, that would be my pick.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.