Nvidia ‘s expected free cash flow over the next two years highlights the immense potential of the AI chip maker, according to one chief investment officer. Free cash flow (FCF) is the cash a company generates from its operations after accounting for capital expenditures. It represents the money available for the company to distribute to shareholders, pay off debt, or reinvest in the business — all of which typically help lift share prices. “The stat that really blew my mind is that the forecast cash flow for Nvidia for 2026 is higher than Microsoft ,” Yuri Khodjamirian, CIO at Tema ETFs, told CNBC’s Squawk Box Europe, emphasizing the remarkable growth trajectory of Nvidia. FactSet data shows that Wall Street analysts expect Nvidia’s FCF to rise to $78.7 billion and $91.1 billion in the 2025 and 2026 financial years, surpassing Microsoft’s – currently the world’s most valuable company. This projection is driven by the surging demand for Nvidia’s AI chips, as software companies increasingly rely on these powerful processors to fuel their artificial intelligence models. The spending by software giants such as Microsoft , Amazon and Google is propelling the share prices of Nvidia and other semiconductor companies to new heights. For the first time last week, Nvidia’s market cap topped $3 trillion, briefly surpassing Apple to become the second-largest public company . NVDA 1Y line Khodjamirian noted that Nvidia is “setting the pace” in the industry with annual product announcements that competitors struggle to match. “I think the fundamentals are very bright,” Khodjamirian, who manages Tema’s Monopolies and Oligopolies ETF , said. However, some investors, including Khodjamirian, suggest that revenue potential from AI software — Nvidia’s customers — remains uncertain, which might cap the AI stock’s future growth. Dismissing those concerns, Anthony Ginsberg, chief executive of Gins Global, the firm behind the Tech Megatrend ETF , said that AI is accelerating the adoption rates of cloud services, with a significant portion of IT spending in America being cloud-centric. “If you’re a CEO and don’t have an AI mission, you’re gonna get clobbered,” Ginsberg told CNBC Pro. Ginsberg predicts that Fortune 500 companies will increasingly outsource their AI and algorithmic business to cloud service providers, benefiting companies like Google Cloud and Microsoft Cloud. “If I were a betting guy, I wouldn’t bet against Satya Nadella. So, between Microsoft and Google, run by Sundar Pichai, I would say they’re going to keep knocking Amazon,” Ginsberg said, suggesting that Microsoft and Google are well-positioned to gain market share from Amazon in the cloud space.
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