AI chip chief Nvidia could have a humiliation of riches within the coming years, and shareholders shall be rewarded, a tech analysts predicted.Ben Reitzes, a managing director and head of expertise analysis at Melius Analysis, advised CNBC on Wednesday that Jensen Huang’s Nvidia has mastered a “full stack” strategy with its {hardware} and software program, giving it a key benefit in AI.”What they did is that they constructed a computing language and an ecosystem that means that you can monetize AI, and clearly they’re killing it,” he mentioned.Reitzes has a value goal of $160 on Nvidia inventory, implying a 30% achieve from Friday’s closing value. Regardless of an ongoing selloff that started earlier this month, shares have soared 150% to this point this yr after greater than tripling in 2023. Among the many Magnificent 7 shares that he covers, Nvidia has essentially the most upside forward, he added.One other huge benefit Nvidia has over rivals is its annual cadence of innovating new merchandise, Reitzes mentioned. Which means builders and clients will know the place Nvidia is headed and may finances for upgrades accordingly.”They usually’re working 150 miles an hour whereas everybody else is working 100. It’ll be laborious to catch these guys,” he mentioned.Given Nvidia’s edge within the booming AI area, Melius Analysis tasks the corporate will generate $270 billion in money over the subsequent three years, doubtlessly setting the stage for large shareholder returns.Administration might not be wanting to tout the opportunity of inventory buybacks as these are sometimes related to older firms, Reitzes mentioned. However in his view, it is apparent.”Nobody’s speaking about it, and if you do the mannequin we do, it is a money gusher,” he mentioned. “And there is nothing they’ll do. This authorities’s not going to allow them to purchase something huge. They cannot make investments that a lot in R&D. It is simply not potential. So we gotta get it as shareholders.”To make certain, Nvidia has been returning capital to shareholders. In August, it introduced a $25 billion repurchase program. And final month, Nvidia boosted its quarterly money dividend by 150% from $0.04 per share to $0.10, equal to $0.01 per share on a post-split foundation.Nvidia declined to remark about the opportunity of extra inventory buybacks.For his half, Reitzes was fast to level out that any future buybacks would not suggest that Nvidia has stopped rising. “It isn’t an insult to purchase again shares you probably have nothing else to do.”Nvidia’s current financials present that its potential to generate money is accelerating. Within the fiscal yr that resulted in January, Nvidia’s web money offered by working actions soared to $28.1 billion from $5.6 billion within the prior yr.Story continuesAnd within the first quarter that resulted in April, web money offered by working actions was $15.3 billion—already greater than half of final yr’s whole.In the meantime, Huang advised buyers this previous week that Nvidia will stay the gold customary for AI coaching chips amid considerations that rivals may lower into his market share.The rollout of Nvidia’s Blackwell system later this yr will solely cement that lead, he mentioned on the firm’s annual shareholder assembly on Wednesday.“The Blackwell structure platform will probably be essentially the most profitable product in our historical past and even in the whole laptop historical past,” Huang mentioned.This story was initially featured on Fortune.com