Nvidia (NVDA, Financials) is on an upward trajectory, with market analysts predicting that the semiconductor giant could one day overtake Apple (AAPL, Financials) in market capitalization. High demand for Nvidia’s latest Blackwell chip, which is 25 times more energy efficient than the H100, means the Danish bank believes the stock could reach $250 per share. If Nvidia can match that, its market cap would be $6.2 trillion, double what Apple is currently worth.
The rising energy costs of running data centers, fueling an escalating AI arms race, is fueling insatiable demand for NVIDIA’s cutting-edge chips, which is on track to make it the most profitable company in history. The company also aims to improve its earnings per share, with sales expected to increase from $60.9 billion in fiscal 2024 to $195 billion by 2026.
Additionally, NVIDIA’s control over AI with its graphics chips, which power 90% of AI systems, and its Omniverse platform, which it sells to enterprises, gives it an edge over rivals like Apple. Analysts favor Nvidia at 31 times forward earnings, with 36 out of 43 calling it a Strong Buy, with 25% upside potential.
With such strong growth prospects, Nvidia is positioned to continue rising in 2025, disrupting technology markets and reshaping AI innovation.
This article first appeared on GuruFocus.
