To The Moon

According to Phil Panaro, a former senior advisor at Boston Consulting Group, Nvidia's (NVDA) stock price could reach $800 by 2030. Panaro believes that Nvidia's stock could increase by 545% by the end of the decade.

Not to sound overconfident — it's actually inevitable provided that they can continue to make these chips," he later added of the firm's upside potential. "The AI penetration in the economy right now is literally less than 1%. So you still have all the corporates, the cities, the municipalities, the governments, the military, that are going to be spending money to make sure they leverage AI effectively. So tons of money still to be spent."

Some strategists have been skeptical over Nvidia's rally, with the stock up a monster 2,733% over the last five years. Analysts have attributed some of that growth to "hyperscalers," a small group of Big Tech firms buying Nvidia's chips in large

Panaro's prediction is based on Nvidia's strong growth, including:

Quarterly revenue: Nvidia reached $35 billion in quarterly revenue, which is more than $8 billion over its full 2023 earnings.

AI revolution: Nvidia is expected to benefit from the artificial intelligence revolution.

Web3 transition: Nvidia is expected to benefit from the transition from Web2 to Web3, which is the idea that the internet's next era will be based on blockchain technology.

However, some say that Nvidia's stock price could be affected by a number of factors, including:

AI bubble: If the AI bubble bursts, Nvidia's stock could be hit hard.

Competition: Rivals like Advanced Micro Devices are ramping production of AI-GPUs and introducing new chips.

Internal development: Nvidia's four-largest customers are developing AI-GPUs for their data centers, which could mean Nvidia loses out on valuable data center real estate.

"That's actually the best case for why it's actually going to go up. Because if you look at all the other customers they're not getting to, there's 490 other Fortune 500 firms that haven't really adopted AI to the fullest because they don't understand it. You have all these cities and governments that are going to be redoing all their infrastructure from Web2 to Web3, and you then have the AI arms race, with countries and their militaries, which Nvidia hasn't penetrated for the most part," Panaro said.

He continued: "The stock can go to the moon, essentially, provided that they deliver."

Panaro's prediction leans on the extreme end of forecasters, but Wall Street is generally feeling bullish about the chipmaker's stock, which has climbed 152% since the start of the year. Analysts have issued an average price target of $152 a share for the stock, according to Nasdaq data, implying around 25% upside from current levels.