Apple (NASDAQ: AAPL) is the most valuable company in the world right now with a market cap of $3.4 trillion. But a closer look at the company’s recent financial performance indicates that it is finding it difficult to put its growth into a higher gear.
For instance, in the third quarter of fiscal 2024 (which ended on June 29), Apple’s revenue increased just 5% year over year to $85.8 billion. Analysts are expecting this “Magnificent Seven” stock to finish the year with a 9% increase in revenue to $390 billion. Additionally, its revenue is expected to increase by just 8% in the next fiscal year.
This lukewarm growth at Apple can be attributed to the company’s already massive revenue base. Moreover, Apple’s bread-and-butter end market of smartphones is already quite huge, and its growth has stagnated. Market research firm IDC estimates that the global smartphone market could reach an annual growth rate of just 2.3% through 2028.
Considering that Apple is reliant on the iPhone for 52% of its revenue, it is not surprising to see that it’s not expected to grow at a blistering pace anymore. This is precisely the reason Apple could lose its crown as the world’s most valuable company to Nvidia (NASDAQ: NVDA), a company that is sitting on lucrative and fast-growing end markets that could help it deliver impressive growth over the next decade.
Let’s look at the reasons why Nvidia could be worth more than Apple after a decade.
Nvidia is set to benefit from massive growth opportunities in multiple end markets
Nvidia is currently the third-most valuable company in the world with a market cap of $2.85 trillion, which means that it is not very far from catching Apple. The terrific pace at which Nvidia has been growing tells us that it can indeed catch the iPhone maker over the next decade.
The company, which is known for its graphics processing units (GPUs), reported phenomenal revenue growth of 122% in the second quarter of fiscal 2025 to $30 billion. Nvidia has been riding the artificial intelligence (AI) wave, with its chips being deployed for training popular AI models such as…
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