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Prediction: 1 Stock That'll Be Worth More Than Apple a Year From Now
AAPLApple(AAPL) The Motley Fool·2025-04-30 10:12

Group 1: Apple Overview - Apple is the largest company in the world with a market cap of 3.1trillion,drivenbystrongdemandforconsumerelectronicslikeiPhones,MacBooks,andiPads[1]−iPhonesaleshavestagnated,withrevenueflatyearoveryearinQ1fiscal2025,accountingfor553.1 trillion, driven by strong demand for consumer electronics like iPhones, MacBooks, and iPads [1] - iPhone sales have stagnated, with revenue flat year over year in Q1 fiscal 2025, accounting for 55% of Apple's total revenue, leading to only a 4% increase in overall revenue [2] - The company's reliance on its high-margin services business has resulted in a 10% increase in earnings year over year, with analysts expecting only a 7% growth in earnings for the current year due to external uncertainties [3] Group 2: Nvidia Growth Potential - Nvidia is the third-largest company globally with a market cap of 2.7 trillion, benefiting from strong demand for its GPUs in AI data centers [5] - Analysts predict Nvidia's earnings will grow by 48% this fiscal year, with a median price target of 160indicatingpotentialgainsof47160 indicating potential gains of 47%, compared to Apple's expected 17% gain [6] - Nvidia's data center revenue nearly doubled year over year to 35.6 billion, with 11billioninsalesfromitslatestBlackwellAIGPUs,highlightingsignificantgrowthpotential[7]Group3:FutureOpportunitiesforNvidia−TheStargateProject,witha11 billion in sales from its latest Blackwell AI GPUs, highlighting significant growth potential [7] Group 3: Future Opportunities for Nvidia - The Stargate Project, with a 500 billion investment led by OpenAI and SoftBank, is expected to drive robust demand for Nvidia's GPUs, with 100billionallocatedforAIinfrastructurethisyear[8]−ThefirstStargatesiteisprojectedtouse400,000Nvidiachips,potentiallygenerating100 billion allocated for AI infrastructure this year [8] - The first Stargate site is projected to use 400,000 Nvidia chips, potentially generating 14 billion in revenue, with plans for a total of 10 sites in the U.S. [9] - Heavy investments in AI infrastructure by major tech companies and growth in automotive revenue present additional opportunities for Nvidia [10] Group 4: Valuation Comparison - Nvidia's forward earnings multiple is 24.8, which is cheaper than Apple's 28.7, making Nvidia an attractive buy [12] - The combination of faster growth, better valuation, and a healthy AI chip market compared to the declining smartphone market positions Nvidia to potentially surpass Apple in market cap [13]