Apple is the largest company in the world by the maximum market at the present time, but it can be exceeded by the fast -growing chip maker next year.
The prosperous demand helped on artificial intelligence devices (AI) This chips maker achieve great growth.
This also explains why analysts expect greater gains than this shares than Apple.
apple (Nasdaq: Aapl) It is the largest company in the world worth $ 3.1 trillion, as it reaches this position thanks to the strong demand for its consumer electronics products such as iPhone, Macbooks and iPads, among other things.
However, the past few years have not been great for Apple, as its largest product through revenue – iPhone – has stagnated in terms of sales. In the first quarter of the fiscal year 2025, for example, Apple’s iPhone revenues were flat on an annual basis. Given that this product represents 55 % of the upper lines in Apple, it is easy to know why the company’s revenue increases by only 4 % during the quarter.
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The company relies on high -marginal services to pay stronger profits growth, but the IPHONE effect on Apple indicates that its profits have increased by only 10 % of the period before the year. Throwing in the uncertainty created by the trade war fueled by the customs tariff, which can negatively affect smart phone sales, and it is easy to know why the company’s profits are expected to grow by only 7 % this year.
However, there is another company that is expected to achieve much stronger growth, and may outperform Apple The maximum market Next year. Let’s take a closer look at this name and check the reason for buying it from Apple now.
Strong demand for Nafidia‘s (Nasdaq: nvda) GPUs for Publishing in Artificial Intelligence Data Data Centers made the third largest company in the world, with a maximum market of $ 2.7 trillion. So, NVIDIA does not exceed Apple in terms of evaluation, and medium goals for one year indicate both companies that the chips maker is likely to become greater than the consumer electronics giant.
The 12 -month NVIDIA NVIDIA price is targeted, at a value of $ 160, towards possible 47 % gains next year. This is higher than 7 % of the Apple shares are expected to be offered next year, according to the average basic consumption of $ 245. Therefore, analysts expect NVIDIA to become a larger company than Apple in the next 12 months, and this is not surprising, as previous profits are expected to grow at a fastest 48 % rate in the current fiscal year.
The reason that NVIDIA can actually achieve this great growth is the outstanding demand for the latest generation of Blackwell AI graphics units. The company sold Blackwell’s remedies of $ 11 billion in the fourth quarter of the fiscal year 2025, which represents nearly a third of the data center revenues. What should be noted is that the NVIDIA data center revenue has doubled almost throughout the year in the previous quarter to 35.6 billion dollars, and Blackwell’s contribution clearly indicates that it is now moving the needle in a larger way to the company.
Looking at the future, the demand for graphics processing units at the NVIDIA Data Center will remain strong, thanks to huge investments such as the Stargate project worth $ 500 billion led by Openai and Softbank. The Stargate team expects to publish $ 100 billion this year to build an infrastructure for Amnesty International in the United States, followed by another $ 400 billion over the next four years.
The first data center site is expected to use the 400,000 NVIDIA chips. According to the average selling price of the average sale price of Blackwell B100 from 30,000 dollars to 35,000 dollars, while the leading GB200 SIM for $ 60,000 to $ 70,000. Assuming that NVIDIA sells these 400,000 chips for 35,000 dollars each, it has achieved revenues of at least $ 14 billion from Stargate the first. Given that a total of 10 sites of Stargate are expected to be built in the United States, NVIDIA has an enormous opportunity to maintain the impressive growth it offers in recent years.
Moreover, heavy investment in AI’s infrastructure by major technology companies this year will be the other winds for the giant chips. In addition, the company acquires momentum in areas such as cars, where there are revenues It is expected to jump significantly this yearThe opportunity to process $ 300 billion indicates that there is a great room for growth in this market.
We have seen why NVIDIA is likely to outperform the maximum Apple market in the next year, but what makes the chip maker worth buying is his attractive evaluation. Investors can buy NVIDIA with 24.8 -time front profits at the present time, which is cheaper than Apple profit complications to 28.7.
Therefore, a range of fastest growth, cheapest evaluation and health status of the artificial intelligence chips market compared to the potential decrease in the smart phone market are the reasons why NVIDIA makes a larger company than Apple next year.
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*The stock consultant dates back from April 28, 2025
Hald Johann He has no position in any of the mentioned stocks. Motley Fool has positions in Apple and NVIDIA and recommends it. Motley deception has Disclosure.
