Nvidia’s (NVDA) AI Chip Revenue Will ‘More Than Double’ by 2030, Says TD Cowen

Analysts at investment bank TD Cowen have put out an extremely bullish note on Nvidia (NVDA).

TD Cowen’s technology team says Nvidia is likely to continue dominating the artificial intelligence (AI) chip market through the end of this decade. The bank forecasts that the market for AI microchips and processors will grow from $117 billion in 2024 to $334 billion by 2030, and that Nvidia will continue to control 90% of the market.

TD Cowen forecasts that Nvidia’s revenue from AI chips will “more than double” from $100 billion in 2024 to $262 billion in 2030 as the market continues to expand. We are “incrementally more confident in the depth and breadth of Nvidia’s competitive positioning,” writes TD Cowen in its report.

What Competition?

Other analysts and Wall Street firms have taken a more skeptical view of Nvidia, saying the chipmaker is likely to face growing competition in coming years as rival companies such as Broadcom (AVGO) and Advanced Micro Devices (AMD) take market share in the highly competitive AI chip space.

TD Cowen said it is less concerned about Nvidia’s competition, saying it expects competitors’ share of the AI chip market to grow from 10% to only 15% by the end of the current decade. As such, TD Cowen believes Nvidia will maintain its top position, saying competing AI chips will offer less performance than Nvidia’s chips by a “healthy margin.” NVDA stock has declined 1% this year.

Is NVDA Stock a Buy?

The stock of Nvidia has a consensus Strong Buy rating among 40 Wall Street analysts. That rating is based on 34 Buy, five Hold, and one Sell recommendations assigned in the last three months. The average NVDA price target of $164.51 implies 23.05% upside from current levels.

Read more analyst ratings on NVDA stock