Nvidia’s impressive surge on the stock market has put it in a position to potentially surpass Apple in market capitalization by 2025. With a current market cap of $2.22 trillion, Nvidia is not far behind Apple, which stands at $2.61 trillion.
The success of Nvidia can be attributed to its strong foothold in the artificial intelligence (AI) chip market, which is projected to see significant growth in the coming years. In fiscal 2024, Nvidia reported a remarkable increase in revenue, reaching $60.9 billion, largely driven by its dominance in the AI data center graphics processing unit (GPU) market. With an estimated market share of 98%, Nvidia’s AI GPUs are in high demand, commanding substantial margins that have translated into impressive earnings growth.
On the other hand, Apple relies heavily on the smartphone market, particularly the iPhone, which accounted for 58% of its revenue in the first quarter of fiscal 2024. However, Apple’s revenue only saw a modest 2% increase year over year, highlighting the challenges in a market that is growing slowly compared to the booming AI chip industry.
Furthermore, Apple faces stiff competition in its key markets, with competitors like Samsung gaining ground and venturing into AI-focused products. This, coupled with slower growth projections for Apple compared to Nvidia, has led to speculation that Nvidia could surpass Apple’s market cap in the near future.
Analysts suggest that Nvidia’s revenue is expected to reach nearly $131 billion in fiscal 2026, translating to a potential market cap of $3.27 trillion. Meanwhile, Apple, with slower growth rates and higher competition, may see its market cap hover around $2.9 trillion by the same year.
As investors weigh their options between these tech giants, many are leaning towards Nvidia as a more promising investment given its rapid growth in the AI chip market and the potential to outpace Apple in the coming years.
In conclusion, while Apple remains a dominant player in the tech industry, Nvidia’s stellar performance and strategic positioning in high-growth markets could see it take the lead in market capitalization by 2025. Investors are closely watching these developments as Nvidia continues on its trajectory towards potentially surpassing Apple in the near future.
