Nvidia Rebuffs Dell Acquisition Rumor While Analyst Sees $22 Trillion Valuation
Nvidia issued a statement shutting down speculation over a potential Dell acquisition, but investor skepticism persisted. UBS’s HOLT model values Nvidia at $22 trillion based on cash flow return on investment, while cautioning that rising competition could undermine growth assumptions.
1. Denies Dell Acquisition Rumor
Nvidia released a formal statement denying any talks with Dell regarding an acquisition, aiming to halt speculation that had circulated on social media and financial blogs. Despite the clarification, trading volumes remained elevated and share performance indicated persistent investor doubts over future M&A developments.
2. UBS HOLT Model Projects $22 Trillion Valuation
UBS applied its proprietary HOLT model to estimate Nvidia’s enterprise value at $22 trillion, driven by the company’s strong cash flow return on investment metrics. The analysis highlights that this sky-high valuation assumes sustained market leadership and warns that intensifying competition in AI chips could significantly alter growth trajectories.