There are predictions that Nvidia’s market capitalization will exceed $6 trillion by the end of the year.
Considering Nvidia’s current market capitalization is $3 trillion, the stock price may double. Eric Jackson, who runs the hedge fund EMJ Capital, made this prediction during an appearance on CNBC on June 26.
He predicted, “The beast known as Nvidia is ready to take off.”
He forecasted Nvidia’s Price-Earnings Ratio (PER) would approach 70 by the end of the year, with the stock price at $250 and the market capitalization surpassing $6 trillion.
He explained that Nvidia’s stock price will rally when sales of the next-generation AI-specific Blackwell chip begin in the second half of 2024 along with the next-next-generation Rubin chip expected to be released next year. He added, “No one can stop them.”
Nvidia currently records a future PER of 47.47 based on earnings after the next 12 months. This is lower than the average over the past five years.
Jackson emphasized that this indicates Nvidia has ample room for additional rallying.
Meanwhile, Nvidia closed the day on the New York Stock Exchange at $126.40, up 0.25% from the previous trading day.
