Ex-Scottish Mortgage star says Nvidia can hit £40trillion
Former Scottish Mortgage Investment Trust manager James Anderson
A top tech investor has said chipmaker Nvidia could reach a nearly £40trillion valuation within a decade.
That would make it worth more than the combined market value of the S&P 500, an index of the biggest US-listed firms.
Shares in Nvidia have soared 162 per cent since the start of the year, giving it a valuation of more than £2trillion.
The stock hit an all-time high last month as it cashes in on the AI craze which experts predict will continue.
Investor James Anderson told the Financial Times: 'The potential scale of Nvidia in the most optimistic outcome is both way higher than I've ever seen before and could lead to a market cap of double-digit trillions.'
An Nvidia share may be worth around £15,750 in ten years, which would mean a market cap of £39trillion, he said.
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Boom: Nvidia hit an all-time high last month as it cashes in on the AI craze which experts predict will continue
Anderson is best known for running Baillie Gifford's Scottish Mortgage Investment Trust for more than two decades which first bought Nvidia in 2016.
He was renowned for making a series of successful bets in the tech sector, including Tesla and Amazon, before leaving in 2022.
Scottish Mortgage shares have fallen more than 40 per cent since their peak in late-2021, as higher interest rates triggered a sell-off in growth stocks but the trust then failed to fully benefit from the Magnificent Seven-driven bounce back.
However, the trust has been boosted by its holding in Nvidia, which is its biggest allocation at 9.4 per cent of the portfolio.
Nvidia became the first chipmaker with a market valuation of $1trillion (£787billion) last May.
Anderson’s thoughts chime with those of fund manager Stephen Yiu, whose Blue Whale Growth fund has the chipmaker among its top 10 holdings.
Yiu recently told the Mail on Sunday: 'We have for some time thought Nvidia would become the most valuable company in the world… in overtaking Microsoft, it has now achieved that remarkable milestone.'
