Shares of Nvidia (NVDA) have been struggling a little bit after the chipmaker’s latest earnings report left investors seeking a bit more clarity on sales of its new Blackwell AI processors. However, Saxo Bank recently made a bold prediction – Nvidia’s stock could surge 80% to $250 in 2025. The bank believes that the booming demand for Blackwell chips, which are both powerful and energy-efficient, will be the catalyst that drives the stock to these levels.
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If successful, Saxo suggests Nvidia could surpass Apple’s (AAPL) record $105 billion annual profit and double its market cap to potentially become the world’s most valuable company. However, Saxo notes this as a speculative, unlikely scenario.
Nvidia Might Begin Using Its Cash for Mergers and Acquisitions
Interestingly, in a separate development, Nvidia might begin using its growing cash reserves for mergers and acquisitions, according to CFO Colette Kress. Speaking at the UBS Global Technology and AI Conference in Arizona on Tuesday, Kress hinted at the potential for acquiring “great teams” as part of the company’s strategy to put its cash to work.
With the Trump administration expected to be more lenient on regulations, it is possible that more acquisitions will be allowed to go through. This would be especially beneficial to Nvidia since its market dominance currently makes it an easy target for antitrust regulators. In fact, regulators got in the way of Nvidia’s attempted acquisition of ARM Holdings (ARM) a couple of years ago.
If Nvidia is allowed to purchase companies going forward, then it could very well surpass Apple’s market cap at some point in the future.
Is NVDA a Good Stock to Buy?
Analysts remain bullish on NVDA stock, with a Strong Buy consensus rating based on 37 Buys and three Holds assigned in the past three months. After an almost 204% rally in its share price over the past year, the average NVDA price target of $176.14 per share implies an upside potential of 27% from current levels.
