Prediction that Amazon and Nvidia will surpass Apple in valuation by end of 2025

From Nasdaq: 2025-01-04 04:00:00

Apple remains the most valuable U.S. company with a market value of $3.7 trillion, but struggles to monetize artificial intelligence. Analysts predict sideways trading for Apple stock, with a 12-month target of $250 per share. Amazon, at $2.3 trillion, and Nvidia, at $3.3 trillion, have potential to surpass Apple’s valuation.

Amazon’s revenue grew by 11% to $159 billion in Q3, with operating margin up and GAAP earnings rising 52%. With a strong e-commerce presence, ad tech segment, and leading cloud services, Amazon’s future earnings are estimated to increase by 26%, making its current valuation reasonable.

Nvidia’s revenue surged by 94% to $35 billion in Q3, driven by AI hardware demand. The company’s GPUs are crucial for AI infrastructure, and the upcoming Blackwell GPU promises faster AI tasks. With estimated earnings growth of 50%, Nvidia’s current valuation of 51 times earnings is considered cheap.

For both Amazon and Nvidia, patient investors may find buying opportunities. Both companies have high buy ratings compared to peers in the S&P 500. Consider the potential for growth in these tech giants, as they continue to innovate and lead in their respective industries.



Read more at Nasdaq: Prediction: 2 AI Stocks Will Be Worth More Than Apple Stock by the Year’s End in 2025