Nvidia's growth potential fueled by AI-driven demand may surpass Apple's market cap next year

From Nasdaq: 2025-04-30 06:12:00

Apple (NASDAQ: AAPL) is the largest company in the world with a market cap of $3.1 trillion, driven by strong demand for products like the iPhone and MacBooks. However, iPhone sales have been stagnant, impacting revenue growth. Analysts expect Apple’s earnings to grow by just 7% this year due to trade war uncertainties.

Nvidia (NASDAQ: NVDA) is close to overtaking Apple in market cap at $2.7 trillion, fueled by AI-driven demand for its GPUs. Analysts project Nvidia’s earnings to grow by 48% this fiscal year, outpacing Apple. The company’s data center revenue nearly doubled year over year, with strong prospects from investments in AI infrastructure.

Nvidia’s growth potential is further boosted by investments in AI infrastructure and expansion into other markets like automotive. With a forward earnings multiple of 24.8, Nvidia appears to be a better buy than Apple, which has a forward earnings multiple of 28.7. The AI chip market’s health and Nvidia’s growth trajectory make it a compelling investment option.

Investors can seize a potentially lucrative opportunity by considering Nvidia’s strong growth prospects and attractive valuation. The company’s focus on AI and expansion into new markets position it for significant growth, potentially surpassing Apple in market cap within the next year. Joining Stock Advisor provides access to timely investment alerts for promising companies.



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