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A leading tech investor has said chipmaker Nvidia could reach a valuation of almost £40bn within a decade.
That would make it worth more than the combined market value of the S&P 500, an index of the largest publicly traded companies in the United States.
Nvidia shares have soared 162 percent since the start of the year, giving it a valuation of more than £2 trillion.
Stocks hit an all-time high last month, riding the AI craze that experts predict will continue.
Investor James Anderson told the Financial Times: “The potential scale of Nvidia at the most optimistic outcome is far greater than I have seen before and could lead to a double-digit trillion market capitalisation.”
Boom: Nvidia hit an all-time high last month as it capitalized on the AI craze that experts predict will continue
An Nvidia share could be worth around £15,750 in ten years, giving it a market capitalisation of £39bn, he said.
Anderson is best known for running Baillie Gifford’s Scottish Mortgage Investment Trust for more than two decades, which first bought Nvidia in 2016.
Nvidia became the world’s first chipmaker with a market valuation of $1 trillion (£787 billion) last May.
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