Prediction: This AI Company Will Be the Most Valuable in the World by the End of 2025

Source The Motley Fool

There isn't a prize for being the largest company in the world by market cap, but it's a position that many companies envy. Right now, Apple (NASDAQ: AAPL) is the largest, although Nvidia (NASDAQ: NVDA) is right on its tail and may move in and out of first place depending on the market's daily swings. Microsoft (NASDAQ: MSFT) is in third place, but it would need to rise about 16% to take the lead from Apple.

As a result, the race for the title of world's most valuable company by the end of 2025 is likely between just Nvidia and Apple, barring major news from Microsoft that vaults it into the lead. Apple has held the title pretty much since 2011, but can Nvidia take it over by the end of the year?

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Nvidia has seen a massive revenue boom

Apple is by far the leading consumer tech brand, and a large percentage of consumers already have an iPhone. Most iPhone users are also devoted to the Apple ecosystem and may own its AirPods, MacBooks, iPads, and smartwatches. This dominance has made the company the world's largest for a long time.

Nvidia has received much more attention during the past two years with its primary product, the graphics processing unit (GPU), which it invented in 1995. The original purpose of a GPU was for processing video gaming graphics, but other uses were soon discovered.

Because the GPU can process multiple calculations in parallel, it became the choice for any task that required vast amounts of computing power. This expanded its functions into engineering simulations, drug discovery, cryptocurrency mining, and artificial intelligence (AI) model training.

AI training has been a huge theme during the past few years, and with Nvidia's GPUs and software being the best available for the job, the company quickly established dominance in the market. GPU demand has rapidly risen since 2023, as shown by the chipmaker's revenue growth.

NVDA Revenue (TTM) Chart

NVDA revenue (TTM), data by YCharts; TTM = trailing 12 months.

In just two years, the company has gone from about $30 billion in annual revenue to more than $100 billion, and Wall Street analysts still forecast enormous growth during the next two years.

NVDA Revenue Estimates for Current Fiscal Year Chart

NVDA revenue estimates for current fiscal year, data by YCharts.

With more than 50% growth expected in fiscal 2026 (ending January 2026), Nvidia still seems to have plenty of potential.

But what about Apple?

Apple's growth has stagnated

Apple's growth has been nonexistent during the past few years, and its revenue has been little changed during the same frame as covered in the Nvidia charts above.

AAPL Revenue (TTM) Chart

AAPL revenue (TTM), data by YCharts.

Its overall revenue figure is much higher than Nvidia's, but it has shown no growth in earnings per share or revenue in the period. However, during the past three years, Apple's stock has risen 42%. How is this possible?

Investors have been willing to pay more for Apple's earnings, which has caused the valuation to skyrocket. The same trend also happened with Nvidia, but it had considerable underlying growth as well. After the run-up during the past few years, Apple's stock is within shouting distance of the chipmaker's price-to-earnings (P/E) valuation.

NVDA PE Ratio Chart

NVDA PE ratio, data by YCharts.

Nvidia still holds about a 46% premium to Apple's stock from a (P/E) perspective. However, Nvidia earnings per share (EPS) are forecast on average to rise by 50% while Apple's EPS is projected to grow by 22%.

The question for investors is: For two companies producing about the same earnings, should the one growing faster be valued higher than the one growing slower? The answer seems obvious, and as a result, I think faster-growing Nvidia will be the world's most valuable company by the end of the year, as long as analyst projections are close to correct.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $858,668!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of January 6, 2025

Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Elon Musk is doing nothing to stop Tesla’s downfallTesla sales are collapsing worldwide, and Musk’s chaotic leadership and focus on political power plays are doing nothing to stop the downfall. The start of 2025 has been troubling, particularly in Europe, where Tesla saw a 45% drop in new registrations in January compared to the same period in 2024, with further declines in February. […]
Author  Cryptopolitan
Mar 24, Mon
Tesla sales are collapsing worldwide, and Musk’s chaotic leadership and focus on political power plays are doing nothing to stop the downfall. The start of 2025 has been troubling, particularly in Europe, where Tesla saw a 45% drop in new registrations in January compared to the same period in 2024, with further declines in February. […]
placeholder
Nvidia stock sinks 4% as Trump’s tariff plans rattle AI tradeNvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
Author  NewsBTC
Yesterday 01: 15
Nvidia shares fell over 4% early Monday after US President Donald Trump delivered a stern message about trade tariffs. Trump said on Sunday that no country would be given any special treatment regarding tariffs. He also signed new trade policies into effect on April 2, which he calls “Liberation Day.” This frightened investors, who had […]
placeholder
XRP Price Set For ‘Hot’ April With Low Fibonacci Levels And High $5-$8 TargetThe past 24 hours have been challenging for XRP holders. A sharp 5.8% decline in price has brought the asset close to testing critical support around $2, with selling pressure currently dominating XRP’s trading volume. The sentiment is turning bearish, but one analyst is confident in the cryptocurrency’s long-term trajectory, predicting that the altcoin is […]
Author  NewsBTC
Yesterday 01: 54
The past 24 hours have been challenging for XRP holders. A sharp 5.8% decline in price has brought the asset close to testing critical support around $2, with selling pressure currently dominating XRP’s trading volume. The sentiment is turning bearish, but one analyst is confident in the cryptocurrency’s long-term trajectory, predicting that the altcoin is […]
placeholder
PEPE Price Forecast: PEPE could rally to double digits if it breaks above its key resistance levelPepe (PEPE) memecoin approaches its descending trendline, trading around $0.000007 on Tuesday; a breakout indicates a bullish move ahead.
Author  FXStreet
Yesterday 05: 34
Pepe (PEPE) memecoin approaches its descending trendline, trading around $0.000007 on Tuesday; a breakout indicates a bullish move ahead.
placeholder
Gold price hits new all-time high ahead of Trump’s reciprocal tariffsGold price (XAU/USD) edges higher again for a second day this week and for the first day of the second quarter of 2025.
Author  FXStreet
18 hours ago
Gold price (XAU/USD) edges higher again for a second day this week and for the first day of the second quarter of 2025.
goTop
quote