Investor James Anderson, known for his long career at Baillie Gifford and leadership of the Scottish Mortgage Investment Trust, has made a striking prediction about Nvidia. He suggests the chipmaker's market capitalization could climb to $50 trillion over the next ten years, assuming artificial intelligence adoption maintains its current pace.
Nvidia's recent financial results show strong performance. In the fiscal third quarter ending October 26, 2026, the company reported record revenue of $57 billion, a 62% increase from the previous year. Earnings per share rose 67% to $1.30. For the fourth quarter, Nvidia forecasts revenue of $65 billion, which would represent 84% growth.
Anderson bases his projection on several factors. He anticipates the data center market will expand by 60% annually due to AI demand. If Nvidia keeps its current profit margins and AI adoption continues, he calculates earnings per share could reach $135 and free cash flow $100 per share in a decade. Using a 5% free-cash-flow yield, the stock price might approach $2,000 per share, pushing the market cap near $49 trillion.
"It is the long duration of the development of [GPU] usage in AI -- and not just AI -- from excitement, through potential pauses, to transformation of industries that is most important to us," Anderson said. He acknowledged this is not a firm prediction but a possibility, estimating the odds between 10% and 15%.
Nvidia currently holds about 92% of the data center GPU market, according to IoT Analytics. Anderson noted the company's "persistent exponential progress, the competitive advantages in hardware and software, and the culture and leadership, are exactly what we look for."
Potential obstacles include fears of an AI bubble, competition from rivals, or failure of AI to achieve mass adoption. Anderson recognized these risks, stating the scenario depends on AI working for customers and Nvidia maintaining its lead.
Despite the ambitious forecast, Anderson emphasized that Nvidia does not need to reach a $50 trillion market cap to be a successful investment. Even if his hypothesis is only directionally accurate, shareholders could still see significant returns.