Nvidia stock could surge (record) 259% by 2030. The artificial intelligence (AI) company’s stock could soar even higher, according to a Wall Street analyst.

If there is a company that exemplifies the opportunities that accelerating the implementation of artificial intelligence (AI), Nvidia (NASDAQ: NVDA) it is safe to say that this is the company.

Its graphics processing units (GPUs) were already the gold standard for processing earlier versions of AI before generative AI burst onto the scene early last year. These advancements required significantly more processing power than their predecessors, and Nvidia was there to answer the call, quickly becoming the go-to company for cutting-edge AI performance.

The result was a parabolic stock price move that was breathtaking. Nvidia is up 147% over the past year, with gains of 478% over the past three years (at the time of this writing). One Wall Street analyst believes Nvidia still has a long way to go, predicting that the stock could generate additional gains of 259% by 2030. However, the same analyst believes that rival Advanced Micro Devices (NASDAQ:AMD) could rise even higher.

Historical background

Beth Kindig, chief technology analyst and CEO of the I/O Fund, has an impressive track record of covering Nvidia. Back in 2018, she argued that Nvidia had an “unbreachable moat” fueled by the “performance and efficiency” of its cloud GPUs, which would give the company an insurmountable advantage in the “next wave of AI applications.” Kindig suggested that developer adoption of Nvidia’s platform was key to the company’s future success.

Fast forward a few years, and Kindig’s predictions have proven surprisingly accurate. What’s more, Nvidia’s continued focus on research and development (R&D) keeps the company light years ahead of the competition in terms of performance, something Kindig also predicted.

Given her track record, when Kindig talks about Nvidia, Wall Street listens. Just last month, Nvidia briefly became the world’s most valuable company, sending its market capitalization to $3.3 trillion, surpassing Microsoft AND Applethough she has since backtracked. Kindig believes Nvidia stock still has a long way to go, predicting its market capitalization will reach $10 trillion by 2030, which would represent an additional 259% gain from Thursday’s closing price. Perhaps more surprising, though, is her view that Advanced Micro Devices (AMD) could generate even more impressive gains over the same period.

Changing of the guard

So far, the broad adoption of AI has focused on training AI systems like ChatGPT. But that’s just the first step, as these models must be deployed to perform the tasks they were trained for, a process known as inference.

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Kindig says that as the emphasis shifts from training to inference, the opportunities—and competition—will increase. Nvidia currently controls about 98% of the AI ​​training market, leaving rivals with little more than crumbs. But the bulk of AI processing is expected to eventually move from the cloud to the devices themselves, opening the door to more competition.

Much of Nvidia’s current success is due to its Compute Unified Device Architecture (CUDA), a proprietary software platform that developers use to maximize the performance of Nvidia’s GPUs. The inference market will likely become less dependent on CUDA, giving AMD a chance to shine.

While AMD has long been a step behind Nvidia, its processors are comparable in many ways. AMD’s biggest advantage is price, as the company charges significantly less for processors with similar specifications. As AI adoption accelerates, this could give AMD a way to “catch up” on Nvidia’s dominance.

Reports suggest that Nvidia’s H100 AI processors are priced at $40,000, more than twice the price of AMD’s MI300X. Savings of $20,000 per unit could add up quickly, giving investors with big AI budgets a chance to save money. Therein lies AMD’s opportunity.

Accelerated growth at a reduced price

No one knows for sure how big AI’s capabilities will ultimately be, but estimates of generative AI adoption continue to grow. Conservative estimates suggest the market could grow to between $2.6 trillion and $4.4 trillion annually, according to global consulting firm McKinsey & Company.

Given the scale of the opportunity, there’s certainly room for more than one winner in AI, and even small gains in market share could mean big gains for AMD investors. What’s more, the stock is currently trading at less than 7 times next year’s estimated sales, while Nvidia’s price-to-sales (P/S) ratio is over 17, making AMD a much more attractive stock.

Kindig’s history with Nvidia stock has certainly given it the benefit of the doubt. So for investors looking for another way to profit from the AI ​​revolution, AMD stock represents a great opportunity at a more attractive price.

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Danny Vena has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 call options on Microsoft and short January 2026 $405 call options on Microsoft. The Motley Fool has a disclosure policy.

Nvidia Stock Could Rise (Another) 259% by 2030. The artificial intelligence (AI) company’s stock could soar even higher, according to a Wall Street analyst. Originally published on The Motley Fool