NVIDIA Corp. (NASDAQ:NVDA) is projected to surge to a $10 trillion valuation, according to Beth Kindig, lead tech analyst at I/O Fund. Kindig highlighted the potential of Nvidia’s next-generation artificial intelligence chip, Blackwell.

What Happened: Kindig believes Nvidia’s Blackwell chip will significantly boost the company’s value, despite recent investor concerns over its valuation and production delays, Kindig said this in an interview with Yahoo Finance on Thursday.

Nvidia shares dropped over 6% on Thursday after narrowly beating second-quarter earnings expectations.

Kindig emphasized that Nvidia’s growth trajectory will become clearer once Wall Street revises fiscal estimates upward. She predicts that the release of Blackwell’s shipping volume figures in 2025 will be a pivotal moment for the company.

“That’s going to be fireworks, is how I would put it. Absolute, ultimate fireworks for Blackwell will come in first-quarter, with that second-quarter guide,” Kindig said. “Early next year will be fireworks again for Nvidia, and we will be on track for that $10 trillion.”

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Why It Matters: The anticipation surrounding Nvidia’s Blackwell chip is not new. Recently, Wedbush analyst Dan Ives compared Nvidia’s market dominance to LeBron James‘ early career, emphasizing the company’s potential for long-term growth.

Moreover, Nvidia’s push to maintain its lead in AI chips involves the development of larger, more complex processors. These new chips, as noted by analysts, are nearly double the size of their predecessors and pack 2.6 times more transistors, which has led to significant manufacturing challenges and impacted profit margins.

Despite these hurdles, the demand for Nvidia’s AI chips remains robust. JPMorgan analyst Harlan Sur noted that even slight delays in Blackwell’s production will not diminish the focus on AI from cloud service providers. Sur added that the demand for Blackwell could outstrip supply at least through mid-2025.

Additionally, the market is evolving beyond the “Magnificent 7” stocks, which include Nvidia, according to Piper Sandler analyst Craig Johnson.

Price Action: NVIDIA’s stock closed at $119.37 on Friday, up 1.51% for the day. In after-hours trading, the stock slightly dipped by 0.12%. Year to date, NVIDIA’s stock has surged by 147.81%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote