Intelligence Finance learned that Eric Jackson, the hedge fund manager of EMJ Capital, said that Nvidia (NVDA. US) stock price will continue to rise crazily at the end of this year. Jackson predicts that by the end of this year, the stock price will reach $250, which has a potential upside of about 98% compared to the current level. If this rise is realized, the valuation of this AI chip company will reach a staggering $6 trillion.

Jackson believes that all of this is because Nvidia is still relatively cheaply valued. He said in an interview on Tuesday, 'Over the past five years, Nvidia's average forward P/E ratio has been 40 times. After two days of adjustment, its forward P/E ratio is now 39 times. In the past five years, there have been three times when the forward P/E ratio has exceeded 50 times, and twice when it has fallen back close to 70 times.' 'Therefore, we have not yet seen that kind of excitement.'

Jackson bets that as investors begin to focus on Nvidia's profit potential in 2025 and 2026, the excitement may push Nvidia far above its average forward P/E ratio and close to its peak.

Jackson said, 'This is a popular stock that is consistently at a high level. Bad news may reset people's expectations, but good news will also trigger excessive pursuit. Although the stock has risen sharply, investors' excitement has not kept up with the forward P/E ratio.'

Nvidia's stock price has soared 151% so far this year, and the chipmaker briefly became the world's most valuable company with a market value of about $3.3 trillion in the past week.

Jackson said, 'I think we'll see strong sales of Blackwell chips in the second half of this year, with their high gross margins, and we'll start to consider the upcoming Rubin chips. I think we'll see this excitement reflected in a high multiple of the forward P/E ratio, and if this happens, the company could reach a market cap of $6 trillion.'

Jackson also believes that Nvidia has a significant lead over its competitors and will use this advantage in the coming years. In addition, he said that comparing today's Nvidia to Cisco during the Internet bubble period is unfounded.

Jackson pointed out, 'This is not the Cisco of the Internet era. Cisco's highest P/E ratio at the time was as high as 136 times, while Nvidia is currently below its average level over the past five years. Therefore, although Nvidia has performed so well, it is still relatively cheap compared to past trading.'

Even with the sharp rise in the past year, Jackson is not the only one on Wall Street who still bullish on Nvidia. Constellation Research and Rosenblatt have set Nvidia's target price at $200, while Bank of America recently reiterated its target price of $150.

Wall Street believes that although Nvidia's long-term prospects are still good, it does not mean that it can avoid a sharp decline. Earlier this week, Nvidia's stock market value shrank by more than $400 billion, and the stock price fell for three consecutive days, down 16%.