Key analyst sees road to $2 trillion market cap for Nvidia

Nvidia  (NVDA) - Get Free Report, many investors' top pick as the leading artificial intelligence beneficiary, reported another strong quarter last week. The semiconductor company reported adjusted earnings per share of $2.48, beating out analyst estimates of $2.08; it also reported revenue of $13.5 billion, well above the $11.2 billion analysts expected. 

Nvidia further adjusted its forward-looking guidance, saying it expects to earn $16 billion for the current quarter.

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In the wake of Nvidia's second consecutive double earnings beat, investors and analysts were excited, with Wedbush's Dan Ives convinced that strong earnings from Nvidia will help rally tech stocks to a bull market for the remainder of the year.

Others have called Nvidia the leader in the AI revolution, rather than a participant or beneficiary of it.

Trivariate Research CEO Adam Parker is intent on separating out the AI posers from the legitimate AI disrupters. To Parker, Nvidia is absolutely the real deal.

"We track every word related to AI in every transcript over time and there's lots of companies that are using AI-related terminology that have nothing to do with AI," Parker told CNBC. "Part of what we're trying to figure out is who benefits and who doesn't."

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Nvidia – with the largest "upward sales revisions of any mega-cap company ever two quarters in a row" – is one of the fastest-growing mega-cap companies out there, according to Parker. And right now, up nearly 240% for the year and trading at just shy of $500 a share, Parker thinks it looks cheap.

"We wrote six months ago when it was $700 billion cap we wouldn't be surprised if it was $2 trillion in five years," he said. "I didn't think it would happen this quickly, but maybe it's two years. I'm not saying it's smooth sailing."

"It seems to me like they're the easiest beneficiary," he added.

Bank of America has previously described the semiconductor company as the "picks and shovels leader in the AI gold rush."

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