Nvidia (NVDA) continues to prove itself a formidable force in the chip space, seeing upwards of 130% year-to-date gains in its stock price. As of Tuesday, June 3, Nvidia holds a market cap of $2.79 trillion, but this analyst believes it can excel to as high as $10 trillion by 2030. Nvidia is set to enact a 10-for-1 stock split for current shareholders on Friday, June 7, and the stock will begin trading at this adjusted price on Monday, June 10.

I/O Fund Lead Tech Analyst Beth Kindig comments on the market share Nvidia and Advanced Micro Devices (AMD) have to snatch up in the tightening AI chip race, underlining the semiconductor catalysts that could push the former to a landmark $10 trillion forecast.

"So when you combine, now you have software to think of, you have automotive to think of, you have robotics to think of, and that's already pushing us easily past $10 trillion by 2030," Kindig says on the industries Nvidia is finding more opportunities in through its semiconductor products.

Learn more about a company's motivations behind a stock split and what exactly it entails for shareholders.

Watch Beth Kindig's full interview with The Morning Brief, while also being able to catch Yahoo Finance's exclusive interview with Nvidia CEO Jensen Huang.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video Transcript

That certainly mirrors kind of the tone that we heard at Computex from the NVIDIA Ceo Jensen Huang, where he was talking about accelerating everything.

And so how does the mindset and an operation of accelerate everything translate through to market cap and valuation for the company from your perspective and and really kind of ramp up where this could continue to move towards.

And this astronomic growth we continue to see we have a $10 trillion market cap uh target for NVIDIA by 2030 I'll be Candid and tell you, I think it's too low.

Uh The reason is that already we see right now about 60,000 GP us in the data center.

Uh Jensen Wang said on stage that we will go toward a million GP U data center at some point.

So 10 trillion could even be too low.

And here's why one generation which is Hopper gave us a 1.5 trillion push.

So now we have four additional generations that they've laid out for you over the next 4 to 5 years.

Now you got to add on software and you have to add on something like the Omniverse platform which is how all robotics likely a near monopoly of robotics will be developed because they're the simulation company coming from gaming routes.

They basically have an engine and a software platform that will allow uh robotics that is so far ahead that other people, other companies are going to have a hard time competing and that comes from uh you know, simulation routes already.

So when you combine now you have software to think of, you have automotive, to think of, you have robotics to think of a A and that's already, you know, pushing us easily past 10 trillion by 2030.

Of course, when, but just quickly on what kind of market share are we talking here?

Because I mean, there is a competitive landscape where we got to imagine that, you know, none of the other chip companies are just gonna fall in a ditch.

I estimate that A MD is capable of taking somewhere between 10% to maximum 20% of the market.

This is based on the gaming competition.

These two companies have had for some time Intel.

They are moving well past 20%.

Intel is an easier competitor than NVIDIA.

I think NVIDIA clearly is going to be a tougher competitor for a MD.

So I would say, you know, 10 to 20% A MD on GP US when you take a look, Beth, at least Nvidia's valuation right now, the massive run up that we've seen in the near term.

Do you see?

I, I know you're seeing obviously a huge opportunity here over the next several years, but in the near term, do you see any sort of the fact that the valuation could be stretched at all?

That is probably the most important question, which is not, where will NVIDIA be in 2030?

But are we buying now?

And it's not actually a valuation concern because we're talking a company that has gone up, you know, 6 700% on the bottom line.

So, evaluation actually is quite reasonable because of all these raises and beats what NVIDIA is going to need is broad market participation.

And if you look at the broad market, things are a bit weak.

So what the the best time to buy a stock in our opinion is when broad market is participating, which means can NVIDIA withhold or can NVIDIA hold off on a broad market?

Sell off?

Can it um sustain?

And that's the question that tech investors need to understand is that at times it has nothing to do with the stock, it has nothing to do with the individual management team or these amazing fundamentals or the valuation, which we are calling eerily low.

What it has to do with is broad market and sentiment.