While the world has never seen a $ 5 trillion company, there is a competitive race between Apple (NASDAQ: AAPL) and Nvid (NASDAQ: NVDA). Apple has a big leader with its $ 3.6 trillion market capBut Nvidia is not long after with a $ 3 trillion market cap. While those figures may sound close, the gap between the two equals approximately a whole valuation Netflix. Home depotor Johnson & Johnson.
Is Apple's leadership post too far ahead for Nvidia to close the gap? Or is Nvidia brimmed to beat Apple to this milestone?
Due to their pure size, everyone is fairly familiar with Apple and Nvidia businesses. Apple is the main consumer technology brand, with its product led product ecosystem. Nvidia produces Graphics Processing Units (GPUs)They are in high demand thanks to the Artificial Intelligence (AI) weapons race.
Both of these products have a large use cause, but only one company grows at a significant rate: Nvidia. Apple has been stuck in a growth groove for three years, with its earnings per share and rare revenue rising since the beginning of 2022.
While this trend begins to move up, it is hardly appreciative. Analysts expect only revenue growth of 4.6% for the 2025 financial year, so Apple is clearly a sluggish grower. However, despite its revenue and earnings growing in the mid -4% range over the last three years, Apple's stock is up 36%.
How? Investors are willing to pay more than ever before.
Apple's stock now has an incredibly expensive valuation of 38 times drag gains and 33 times onwards gains despite very little growth to show for it. This is in stark contrast to Nvidia, which is growing rapidly.
Nvidia's main chance of catching Apple and beating it to the $ 5 trillion mark is due to its rapid growth. Despite many investors worrying that Nvidia's growth would slow down, he recently reported that his fourth quarter revenue of my 2025 (which ended January 26) rose 78% year -on -year, with earnings per share (EPS) increasing by 82%. Furthermore, management expect Q1 revenue to be approximately $ 43 billion, citing a growth of approximately 65%.
NVIDIA management is known for issuing conservative guidelines for the next quarter and actually projecting 70% revenue growth in CH4 against the actual 78%. Therefore, this Q1 projection denotes almost the same growth projection that Q4 had, which barely means that Nvidia growth is slowing.
This is a bullish sign for investors and could be what continues to drive it towards that $ 5 trillion mark. As for pricing, despite growing significantly faster than Apple, the stock is priced at a lower price tag.
This does not make much logical sense, and I think it indicates that Nvidia's stock is highly underestimated for its growth. It's like the market is tired of Nvidia posting a quarter of a ridiculous growth after a quarter and wants to look to the next big thing.
So can Nvidia beat Apple to the $ 5 trillion mark? I'd say yes, as long as he keeps his growth rate up. Looking at two financial years ahead, we get these revenue projections:
If we multiply the anticipated revenue levels with their current profit profits, we get the net income projection for both companies. In two financial years, Apple will generate $ 115 billion in profit, while Nvidia will be at $ 132 billion. Therefore, if these projections still, there should be no argument that Apple should be appreciated higher than Nvidia in two years.
Apple's revenue has no chance of accelerating to NVIDIA -like levels, confirming that Nvidia should beat Apple to a $ 5 trillion market cap as long as its growth is still.
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Keithen Drury He has jobs in Home Depot and Nvidia. The Motley Fool has jobs in and recommends Apple, Home Depot, Netflix, and Nvidia. The Motley Fool recommends Johnson & Johnson. The fool has motley and Disclosure Policy.
