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A strategist explains that nvidia can grow to be twice the size of Apple. His 'incredibly bold' prediction. -- Barrons.com

Written by Adam Clarke.

According to an analyst, nvidia's stock price was down early Tuesday morning, but could potentially grow to twice the size of apple.

Nvidia's stock fell 0.1% to $138.56 in pre-market trading. The stock rose 0.3% on Monday.

Among other chip makers, Advanced Micro Devices rose 0.9%, Broadcom rose 1.0% in pre-market trading. Intel remained largely flat after the sudden departure of the CEO.

Nvidia's stock price dipped slightly following recent earnings as the market seeks further insights into the surge in sales of the Blackwell artificial intelligence processor. To further grow, nvidia needs to increase ai chip supply to secure demand and sales before competitors take the lead.

If so, where is Nvidia heading next year? Well, Saxo Bank has a forecast that they confess as an 'unbelievable prediction,' discussing the unlikely but possible events. In the case of Nvidia, it includes shares exceeding $250 by 2025.

"We believe that the relentless demand for more powerful yet less power-hungry Blackwell chips will crown Nvidia as the most profitable company in history. With next year easily surpassing Apple's record $15 billion in profit and burning expectations with much faster growth, the market capitalization will nearly double again, becoming twice the size of Apple," writes John J. Hardy, Chief Macro Strategist at Saxo Bank, outlines potential scenarios.

Frankly speaking, such an increase is not an official forecast, but Wall Street is generally positive about further profit prospects.

According to FactSet, the average target price for Nvidia stock among analysts is $170.16. Nvidia is currently trading at about 33 times the future price-to-earnings ratio, which is below the 5-year average of 40 times.

Please write to Adam Clark (adam.clark@barrons.com).

This content was created by Barron's, operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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