You're misinformed if you think you'll get 25 bhp from a "chip" (which is incorrect in its own right, as cars are now reflashed rather than having a chip soldered in). 5 horsepower is possible. 25 is not. Take it from someone who has fully investigated the limits of the M54. A supercharger is the best bang for the buck, though I'm not sure if they make them for your car. You will need an astronomical budget to surpass 100 hp/liter naturally aspirated in the M54, and even then the engine life will be measured in HOURS.
Horsepower = torque x rpm / 5252. You can only get a certain amount of torque out of an engine of a specific displacement without forced induction, no matter what you do to it. Torque usually falls off as the engine moves faster and becomes less efficient. You can do things to make it more efficient in the upper rpm, like install cams with different profiles (at the expense of torque at low rpm and driveability)... or install a less restrictive exhaust system. Cams, exhaust, and tune will net you a good 20-30 hp at the top end, maybe a little more. At the end of the day, a supercharger which maintains all your OEM functions is the best compromise if you want serious power. If you're set on a swap, go with the S54. They are much more common, cheaper, and easier to wire in. I know of a guy (Mike Essa) with a 2.5i that swapped in a S54 turbo, making over 600 rwhp. The tuning wasn't done on the OEM DME, so you probably wouldn't be interested in going that route.
Dynos are easily manipulated. Horsepower varies as much as 5-20 hp per run, depending on how hot the car gets. By taking a weak "before" dyno and comparing it with the best "after" dyno, you can deceptively imply larger-than-life gains. If you want a true before/after, you will need the dyno done through a third party with no association with a tuner. Then, honestly take the best of both the before and after runs to show gains. Jumping to a conclusion prior to an unbiased investigation opens data up for manipulation, due to the temptation to prove something. If a tuner tells you something is possible, and you bite off on it, he’s going to feel pressured to realize unrealistic dreams. I’m not saying he’s dishonest… perhaps misinformed… however, I am keenly aware of human nature, and a business needs to prove its worth to remain relevant (and take your money).
I’d love a V8 or V10 swap in my Z. The main reason tuners do them, however, is to show off their capabilities. They do it because they can. The rest of us ohh and ahh over it

When my engine goes, I’ll swap in another identical engine… though I have thought about a low compression build.