Nvidia may surpass Apple's market cap within a year due to rapid growth fueled by AI

From Yahoo Finance: 2025-04-30 06:12:00

Apple, the world’s largest company by market cap, may soon be overtaken by Nvidia, a fast-growing chipmaker driven by AI hardware demand. Analysts anticipate higher gains from Nvidia over Apple due to its rapid growth and potential to surpass Apple’s market cap in the next year.

Apple’s revenue growth has been limited by stagnant iPhone sales, impacting its earnings. With 55% of revenue coming from the iPhone, Apple’s earnings only increased by 10% year-over-year. Uncertainties like the tariff-fueled trade war may further hinder Apple’s growth, making Nvidia a more attractive investment option.

Nvidia’s robust growth is fueled by the demand for its Blackwell AI GPUs, driving significant revenue from data center sales. Projects like the $500 billion Stargate initiative will further boost demand for Nvidia’s GPUs, positioning the company for sustained growth.

Investors are eyeing Nvidia as it offers faster growth, a cheaper valuation, and a thriving AI chip market compared to Apple’s smartphone market challenges. With analysts predicting Nvidia to outpace Apple’s growth, the chipmaker’s potential to surpass Apple’s market cap in the next year is becoming increasingly likely.



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