Nvidia (NVDA, Financial) is on an upward trajectory, and market analysts predict the chip giant could one day overtake Apple (AAPL, Financial) in market value. The high demand for Nvidia’s latest Blackwell chip, which is 25 times more efficient at consuming energy than the H100, means the Danish bank believes the stock could potentially reach $250 per share. If Nvidia can live up to that, its market cap would be $6.2 trillion, double Apple’s current worth.
The rising cost of energy to run data centrs, which is causing the AI arms race to intensify, has fuelled insatiable demand for Nvidia cutting edge chips which is satiating it for becoming the most profitable company ever. It’s also set to achieve stronger earnings per share, with sales forecast to rise from $60.9 billion in fiscal 2024 at $195 billion by 2026.
In addition, Nvidia’s grip on AI, with its graphics chips powering 90% of AI systems and the Omniverse platform, which sells to businesses, puts it ahead of rivals such as Apple. Analysts support Nvidia at 31 times future earnings, with 36 of 43, giving it a ‘Strong Buy’ and a potential upside of 25%.
Such a strong growth outlook puts Nvidia in a position to continue on its ascent in 2025, disrupting the tech market and reshaping how AI innovation takes shape.
This article first appeared on GuruFocus.
