Why Nvidia’s AI Boom Will Boost Stock for Next 2-3 Years, Says Expert

Portfolio expert Chris Grisanti says that Nvidia’s stock will continue to rise over the next two to three years because of strong demand for AI and a fair price.

Nvidia shares fell 14% for the week ended September 6, but bounced back the following Monday. Chris Grisanti, the Chief Equity Strategist and Portfolio Manager at Mai Capital Management Company, has discussed his vision for Nvidia’s stock prospects and its worth. He outlined how the use of artificial intelligence, abbreviated as AI, will assist the company to expand in the future.

Today Nvidia has a P/E ratio of 26, and it is still in the same line with giants such as Procter & Gamble or Coca-Cola. But here, Grisanti highlighted that Nvidia’s sales are expected to increase by 30 percent in 2025 and then by another 20 percent in 2026. However, the present price shows that this is the stock’s growth potential, so it’s affordable. During the interview with CNBC, he said, “That’s what makes Nvidia interesting to us.”

Grisanti stated that concerns that one is getting into an environment where the economy is slowing down or that there are issues with Nvidia’s stock are not nearly as relevant to the firm. Unlike consumer electronics companies, which directly market their products to the consumer, Nvidia mainly offers its products to Microsoft, Amazon, and AWS, who are heavily investing in AI. Being the hyperscalers, they have long-term strategies in place and have a good amount of cash in hand to continue to pump money into even if the market slows down.

Antitrust concerns and the competitive landscape

To this, Grisanti admitted that there could be the emergence of new competitors, but he does not think about this happening in the near future. He also discussed current antitrust issues that impacted Nvidia’s shares, meaning that these concerns have accumulated to recent fluctuations.

Grisanti also mentioned pot of chips and how much any of them is worth, and the market might have a small-town view of the matter. He added that semiconductors could be compared to oil in the twentieth century as they are essential in the commerce of the twenty-first century. In the past 15 years, the energy sector has become less cyclical, and this is attributed to the application of advanced technical methods such as AI.

Before the market opened on Tuesday morning, Nvidia stock was traded up 0.244%, hitting $106.73.  Doing a Benzinga Pro search reveals that the Shares Semiconductor ETF (SOXX) fell by 0. It is up 17% and kept on rising to close at $207.61.

Now that Nvidia has set its course for AI’s growth in its next phase, the stock will continue to rise in the next two to three years. This is because Nvidia has a good standing in an ever evolving industry.