Nvidia Set For Another 100% Rally Before Year-End, Says Fund Manager: 'They've Got 80 Yards Of A Clear Turf…Nobody's Catching Up To Them'

Nvidia Corp. NVDA roared back up strongly on Tuesday after a three-session sell-off that took it to as low as $118.04 and a fund manager said the stock trajectory will likely be up and onward.

Huge Rally Ahead? Nvidia is going to rise to $250 per share, with its market cap hitting $6 trillion, by the end of the year, said EMJ Capital founder Eric Jackson in an interview with CNBC. The stock ended Tuesday’s session up 6.76% at $126.09, according to Benzinga Pro data, giving it a valuation of $3.10 trillion.

The rally will pick up pace as people start to look forward to what Nvidia will be doing in 2025, the fund manager said. Nvidia is a high-flyer and expectations can reset on a bad earnings report but they can also get equally overhyped on good news, he said.

Despite the stock’s enormous run, the euphoria hasn’t yet caught up in terms of the forward multiple, Jackson said. In the second half of the year, people will start to see how well the Blackwell next-gen high-performance AI accelerators are selling and how good the gross margins are on these chips, and they will look ahead to the Rubin chips that are around the corner, he said.

“After that, I think we'll start to see that euphoria reflected in a lofty go-forward price-earnings multiple and if that happens this thing could go to $6 trillion market cap,” the fund manager said.

See Also: How To Buy Nvidia (NVDA) Stock

Monopoly Market Position: Nvidia currently sells to big hyper-scalers, and since it can’t make enough of AI chips to meet everyone’s demand, it has to prioritize sales, Jackson said. These hyper-scalers are putting in large orders for the H100 and H200 chips and this is a sign Nvidia’s orders are concentrated, he said.

The fund manager also weighed in on what happens when competition emerges. He sees that as years down the road. Taking the football field as an analogy, Jackson said, “They've (Nvidia] got 80 yards of a clear turf in front of them to keep running towards the touchdown. Nobody's catching up to them and there's just a bunch of you know the lazy linebackers behind them so.”

“I think it's years away from that happening,” he said, adding that Nvidia will take advantage of that leap that it has, referring to the first-mover advantage.

Jackson does not see Nvidia’s valuation as expensive. He noted during the dot-com bubble era, Cisco Systems traded at a peak forward P/E multiple of 136 times. Nvidia’s forward P/E is below the mean for the last five years, he said. “So even though the stock has done so well, it is still relatively cheap compared to where it has traded in the past,” he added.

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