A top tech investor has said chipmaker Nvidia could reach a nearly £40trillion valuation within a decade.

That would make it worth more than the combined market value of the S&P 500, an index of the biggest US-listed firms. 

Shares in Nvidia have soared 162 per cent since the start of the year, giving it a valuation of more than £2trillion.

The stock hit an all-time high last month as it cashes in on the AI craze which experts predict will continue.

Investor James Anderson told the Financial Times: 'The potential scale of Nvidia in the most optimistic outcome is both way higher than I've ever seen before and could lead to a market cap of double-digit trillions.'

An Nvidia share may be worth around £15,750 in ten years, which would mean a market cap of £39trillion, he said.

Anderson is best known for running Baillie Gifford's Scottish Mortgage Investment Trust for more than two decades which first bought Nvidia in 2016.

Nvidia became the first chipmaker with a market valuation of $1trillion (£787billion) last May.