Wall Street May Be Missing Nvidia’s Data-Center Potential, Analyst Warns
Nvidia narrowly avoided a sixth straight decline on Thursday, but its stock is still 7% below recent highs. Tech analyst and I/O Fund CEO Beth Kindig argues investors are missing the bigger picture.
While second-quarter results looked soft, Kindig highlights surging networking revenue as the real signal. “That’s what separates this generation of GPUs from the next—the scale of networking required,” she said on the Wealthion podcast.
She downplays China concerns, noting Blackwell chips alone could deliver $100 billion in annual sales versus just $15 billion from China.
More importantly, Kindig says Nvidia has outgrown its identity as a chipmaker. It’s now a “rack-scale company,” combining chips, networking, and software into complete AI systems. “It’s like Apple’s dominance with the iPhone, iOS, and the App Store,” she explains.
Her forecast? Wall Street’s estimates are far too low. Analysts see $293 billion in data-center revenue by 2028; she projects $500 billion, with quarterly revenue potentially reaching $75 billion as early as next year. That could mean 100% upside for the stock.
The demand picture is clear: big tech firms are racing to secure next-gen GPUs, and enterprises shut out so far may step in if hyperscalers ease spending. Next-gen chips like Rubin could spark another upgrade cycle—though soaring power needs may be a limiting factor.
Kindig pushes back on “AI bubble” fears, saying Nvidia and its suppliers remain the essential “picks and shovels” of the AI boom, even if software names prove riskier.