Financial Services Association, July 11 (Editor: Huang Junzhi) Driven by the artificial intelligence (AI) boom,$NVIDIA (NVDA.US)$The stock price has been booming, and the market capitalization has broken through the 3 trillion dollar mark. Although it has experienced several days of decline, it is still the “leader” in the US stock market as a whole. By Wednesday's close, Nvidia was up 2.69% to $134.91, up 180% so far this year.

Currently, with the exception of a few individual analysts who have a wait-and-see attitude towards Nvidia, the majority are still generally bullish. Of the 62 analysts tracked by FactSet, only 8 have a neutral stance on Nvidia's stock.

A veteran tech investor said Nvidia's “money-making train” has just started.

Eric Jackson, founder of hedge fund EMJ Capital, said on the podcast: “I mean [the value of Nvidia] is likely to double again between now and the end of this year.”

From this perspective, Jackson believes that by the end of this year, Nvidia's market capitalization may rise from the current level of around $3.32 billion to $6 billion.

Jackson believes that by publishing a very, very strong performance report in August and/or November, showing the continued demand for H100 and H200 chips, while showing the potential of its new Blackwell chips focused on artificial intelligence, Nvidia's market value is expected to reach this level.

He pointed out that as a result, investors would be willing to pay a higher price-earnings ratio (PE) to hold the company's shares. This is a bold prediction because the data shows that Nvidia's expected price-earnings ratio has reached around 50 times, almost double the market average price-earnings ratio.

“I don't know if it will be August's results, and I don't know if it will be November's results, but I think there will be this kind of optimistic response. If that were the case, it would return to 65 times the expected earnings, and Nvidia's stock price would reach $250 per share.” he said.

Investors were shocked by Nvidia's rise, and because of this, some people are worried that the stock has entered a “bubble zone,” and even compared it to Cisco in the Internet era. In response, Jackson previously argued that there is no basis for comparing Nvidia to Cisco during the internet bubble.

“This is not Cisco in the Internet age. At the time, Cisco's forward price-earnings ratio peaked at around 136 times, while Nvidia was below the average for the past five years. So while the stock has performed so well, it's still relatively cheap compared to past trading levels.” he said.

Jackson is far more than the only person who is optimistic about Nvidia. KeyBanc analyst John Vinh wrote in a customer report this week that Nvidia's positive factors include:

1) Although Blackwell is about to launch in the second half of 2024, we are not seeing any signs of a halt in demand;

2) Demand for the H100 remains strong as we continue to see expedited orders;

3) Interest and demand for the GB200 is greater than we initially estimated.

Edit/jadyen