2 Stocks That Will Be Worth More Than Apple in 10 Years

In the world of finances, 10 years is the blink of an eye. Want proof? Take a good look at the table below:

In August 2014, IBMThe market capitalization was about 18 times larger than Nvidia‘S (NASDAQ: NVDA)But oh, how the tables have turned. Today, Nvidia has a market cap of about $3 trillion — about 17 times larger than IBM.

So, looking ahead to the next 10 years, what are the companies that could surpass Apple‘s huge market cap? Here are two that could make it happen.

Microsoft

If a company wants to surpass Apple in the next decade, it needs a huge market cap. Even assuming Apple’s market cap remains stable, that would mean a company would need to reach a market cap of $3.4 trillion to overtake Apple.

That is a very high demand, and there are only so many companies That might do it. Microsoft (NASDAQ: MSFT) is one of them.

For starters, Microsoft already has a market cap of $3.1 trillion at the time of writing. If recently, in June, Microsoft had a market capitalization larger than that of Apple. In addition, Microsoft has a number of competitive advantages that should eventually allow the company to surpass Apple in terms of market capitalization.

First, Microsoft has a more diversified business. The company has its hands in cloud computing, gaming, advertising, hardware, software, social networking, and artificial intelligence (AI). In short, Microsoft has many paths to success. Apple, has, on the other hand, traditionally benefited from its excellent hardware innovations. While Apple services and AI could boost the company’s revenue, declining iPhone sales could pose a real challenge for Apple over the next decade.

I think that’s an advantage for Microsoft.

Nvidia

I now have reservations about Nvidia. Its sky-high valuation makes it vulnerable to a nasty correction if the company’s sales each signs of slowdown. That being said, this article is about what could happen in the next 10 years. And in that case, i think Nvidia is well positioned to surpass Apple.

That’s because Nvidia’s core business of making the graphics processing units (GPUs) that will power advanced AI systems over the next decade is on a long-term growth trajectory that Apple Ordinary can’t match up.

Sales of Apple’s flagship product, the iPhone, grew every year between 2007 and 2015, but have remained flat since then.

Nvidia, on the other hand, is still growing. Over the past two years, the company has tripled its revenue as GPUs have sold like hotcakes. That growth is not probably to slowly in the coming years. Most analysts expect Nvidia’s revenue to double again by 2026 to around $160 billion.

The story continues

Sure, there will likely be some bumps in the road as competitors chip away at Nvidia’s share of the red-hot AI chip market. But even if Nvidia’s revenue growth slows, it could easily close the $500 billion market cap gap between it and Apple over the next decade.

Should You Invest $1,000 in Microsoft Now?

Before you buy Microsoft stock, here are some things to consider:

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Jake Lerch has positions in International Business Machines and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends International Business Machines and 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.

Prediction: 2 Stocks That Will Be Worth More Than Apple in 10 Years was originally published by The Motley Fool