- 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.
Nvidia Corporation (NASDAQ:NVDA) stock is up 14% since we last covered it a couple of months ago, but also down 7% since the release of its Q3 earnings report last month. Although the earnings report was successful, the market is not satisfied with the guidance that the management announced.
In our previous coverage on Nvidia, we said that the company’s stock is priced for perfection and the inability of the management to constantly increase the outlook significantly above the consensus could kill Nvidia’s momentum. That is precisely what is happening right now. We believe that because of the rising challenges that the company is facing, the future guidance for the upcoming quarters might disappoint as well and lead to a further depreciation of Nvidia’s share price.