On Monday, tech-focused investment firm Altimeter Capital founder and CEO Brad Gerstner said that Nvidia Corp. (NASDAQ:NVDA) could become the world’s first $10 trillion company.
Brad Gerstner Makes Bold Nvidia Prediction Amid AI Boom
Speaking with CNBC’s Scott Wapner at the Milken Conference, Gerstner said Nvidia remains one of Altimeter’s largest holdings and argued the chipmaker is still undervalued despite its massive rally.
“We understand the concerns that are in the market,” Gerstner said, acknowledging investor caution around soaring AI-related valuations.
Still, he maintained that if AI develops as expected, Nvidia’s role as a dominant supplier of advanced chips could drive significantly greater upside over the next several years.
“I think Nvidia will be the first $10 trillion company,” Gerstner said.
Nvidia’s AI Leadership Drives Long-Term Growth Thesis
Gerstner pointed to Nvidia’s leadership in AI chip efficiency, including superior performance measured by token generation per watt and per dollar, as key advantages supporting future growth.
He argued that rapid increases in AI token demand — the computational units behind generative AI systems — will continue fueling massive infrastructure investment.
According to Gerstner, Nvidia’s valuation, trading at roughly 13 to 14 times earnings, does not fully reflect the scale of forward demand tied to AI expansion.
Investors Debate Whether Market Underestimates AI Infrastructure Demand
While some market participants remain cautious about whether current AI enthusiasm may outpace near-term monetization, Gerstner said patience is critical.
“Whether it comes all at once or whether it comes over the course of the next two to three years, we’re patient,” he said, adding, “We’re going to own this. It’s one of our largest holdings.”
Nvidia Q1 Earnings Preview: AI Demand Fuels Growth Expectations
Nvidia currently has a market capitalization of approximately $4.77 trillion and is set to report first-quarter earnings on May 20. Wall Street analysts expect earnings per share of $1.76 on quarterly revenue of $78.78 billion.
In the previous quarter, Nvidia posted EPS of $1.62, surpassing analyst estimates of $1.50, while revenue reached $68.13 billion, ahead of the projected $65.90 billion.
The chipmaker has now exceeded EPS expectations for eight consecutive quarters.
Over the past four quarters, Nvidia has delivered an average EPS surprise of 0.12% and an average revenue surprise of 0.03%, underscoring its consistent financial outperformance amid booming AI-driven demand.
Price Action: Nvidia shares closed at $196.50 on Tuesday, down 1.03%. The stock has surged 10.62% over the past month, according to Benzinga Pro.
According to Benzinga Edge Rankings, Nvidia ranks in the 98th percentile for Growth, reflecting strong performance across short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Glen Photo on Shutterstock.com
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