Prediction suggests Nvidia and Amazon may surpass Microsoft's market cap in the future

From Nasdaq: 2024-08-25 06:30:00

Microsoft has maintained consistent financial and stock growth, with a share price increase of 200% over the last five years. The company’s market cap now sits at over $3 trillion, meaning it remains one of the world’s most valuable companies despite market fluctuations.

Nvidia and Amazon have seen significant stock and earnings growth, particularly in the AI market. Nvidia has outperformed Microsoft in 2024, with a 159% rise in stock compared to Microsoft’s 10%. Amazon’s robust performance in retail and AWS could see it overtake Microsoft in the coming years.

Nvidia’s leadership in AI, with between 70% and 95% market share in GPUs, has led to significant gains. The company’s $39 billion in free cash flow gives it a strong advantage over competitors in the market. This positions Nvidia well to maintain and potentially expand its lead over Microsoft.

Amazon’s investment in expanding its AWS cloud network could be a game-changer for the company. With plans to spend nearly $150 billion on data centers over the next 15 years, Amazon is positioning itself to meet the growing demand for AI applications and digital services. This level of investment could push Amazon’s market cap above Microsoft’s.

Investors looking at Nvidia should note that the company has experienced stellar growth in 2024. However, it’s important to consider all investment options before making a decision. The Motley Fool Stock Advisor service offers guidance on building a successful portfolio, including insights on potential high-growth stocks that could outperform Nvidia in the coming years.



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