Nvidia to hit $500 by decade’s end as power plays lock in dominance, analyst says
Louis Navellier predicts a long-term surge for the chipmaker, citing vertical integration in data centre energy, despite a short-term downgrade due to slowing momentum.
Wall Street analyst Louis Navellier has forecast that Nvidia will trade at a share price of $500 by the end of the decade, attributing the long-term outlook to the company’s deepening vertical integration in data centre power infrastructure. The prediction comes ahead of Nvidia’s quarterly earnings release scheduled for 26 August, a report that analysts expect will see the company nearly double its earnings and revenue year-on-year.
Navellier argues that Nvidia is securing its market dominance for over 20 years by locking in power sources, a strategy that aligns with the standard 20-year lease terms common in the data centre sector. The analyst noted that AI developers are constantly demanding more power, a trend that continues to fuel the broader AI boom and bode well for the chipmaker.
The company is reportedly in advanced talks to acquire an interest in Cloverleaf Infrastructure, a firm that arranges power for data centres. Nvidia has also taken an equity interest in SoftBank’s SB Energy, a deal tied to a megacampus in Ohio that OpenAI has leased for 20 years.
Further cementing this strategy, Nvidia made a $2 billion investment in Lancium, the power developer behind a campus in Abilene, Texas. This facility is where OpenAI rents computing capacity from Oracle, illustrating the complex web of partnerships underpinning the current infrastructure build-out.
Despite the bullish long-term view, Navellier rates Nvidia as a “C” in his stock grading system. This lower short-term grade reflects waning institutional buying pressure and slowing earnings momentum, with the analyst noting that the rate of increase is decreasing despite strong absolute figures.
Investors will also be watching the July Personal Consumption Expenditures report, due on the same day as Nvidia’s results. Economists expect headline PCE to rise 0.1 per cent in July and 3.6 per cent over the past 12 months, a slight decline from the 3.7 per cent annual pace recorded in June. The Federal Reserve’s annual Jackson Hole symposium is scheduled to commence on 27 August, adding to a week that could significantly move markets.
