Three tech companies - Nvidia, Microsoft, and Alphabet - have potential to surpass Apple in value

From Reuters: 2024-10-11 07:15:00

1. Apple (NASDAQ: AAPL) may not hold its top spot as the world’s largest company due to a lack of innovation and stagnant sales since 2022. With a premium valuation of 30.5 times forward earnings, other stocks like Nvidia, Microsoft, and Alphabet could surpass Apple in market cap in the next five years.

2. Nvidia is on track to surpass Apple with 42% revenue growth expected for fiscal year 2026. Despite trading at 47 times forward earnings, its success in AI technologies could lead to overtaking Apple. Microsoft, only 11% away from the top spot, also has the potential to surpass Apple, with its solid revenue growth and similar valuation.

3. Alphabet, with consistent revenue growth and a forward earnings multiple of 21.5, is in a good position to challenge Apple’s market cap. If it can fetch a premium similar to Apple’s, it could potentially close the gap within five years. Apple’s lack of sales growth may lead to these three companies surpassing it in value.

4. It is crucial to consider investments in companies like Nvidia, Microsoft, and Alphabet as potential contenders to surpass Apple in the next few years. With premium valuations and growth prospects, these companies are poised for success. Additionally, seeking advice from analysts on stock tips can lead to profitable investment decisions.

5. Suzanne Frey, a member of Alphabet’s board of directors, has positions in the company, alongside other tech giants like Apple, Microsoft, and Nvidia. The Motley Fool recommends considering these stocks for investment opportunities, highlighting the potential for growth and value in the tech sector.



Read more at Reuters: Prediction: 3 Stocks That’ll Be Worth More Than Apple 5 Years From Now