Against the background of the rapid development of artificial intelligence, after the epic surge in history, the rise of chip manufacturer Nvidia may still be in its infancy.

Top global tech investor James Anderson recently predicted that Nvidia's market value could reach nearly $50 trillion in the next decade, exceeding the total market value of all current S&P 500 index component companies.

Anderson believes that the demand for artificial intelligence chips is growing at a rate of about 60% per year. Over a period of 10 years, this growth will translate into Nvidia's EPS of $1350 and a market value of $49 trillion. He believes the probability of this happening is 10-15%.

The total market value of all companies in the S&P 500 index is about $47 trillion.

Anderson believes that Nvidia's growth potential is much higher than any other company he has ever seen.

He said, "Nvidia's market value could reach tens of trillions of dollars. This is not a prediction, but a possibility if AI can serve customers and Nvidia maintains its leading position."

James Anderson is known for his early investments in companies such as Tesla and Amazon.

Anderson's most famous experience is working at Scotland's well-known investment management company Baillie Gifford for nearly 40 years. There, he managed the company's flagship product, the Scottish Mortgage Investment Trust Fund, which first bought Nvidia in 2016 and helped the investment company become an unexpected star in the field of technology investment.

Last year, Anderson partnered with the billionaire Agnelli family of Italy to create investment management company Lingotto Investment Management and managed a fund with a size of $650 billion. The largest investment of the fund is also in Nvidia.

Nvidia has always been the biggest winner in the AI boom, as it is almost a monopoly in the production of chips used to train and operate powerful generative AI models, such as OpenAI's ChatGPT. Nvidia CEO Huang Renxun claimed that the company is at the center of a new "industrial revolution."

Nvidia's stock price has soared nearly 170% this year, with a market value of over $3 trillion, 20 times its market value of $0.15 billion in 2018. In June of this year, Nvidia even briefly surpassed Microsoft and Apple to become the world's most valuable listed company.

Anderson also added that Nvidia's stock price may fluctuate greatly, and he would not be surprised if Nvidia experiences one or more 35%-40% declines. "This will happen, and I hope we buy more stocks in this situation," he said.

Editor/ping