Prediction: 3 Stocks That Will Be Worth More Than Apple 5 Years From Now
SpaceX, Nvidia, and Alphabet are all likely to be worth more than Apple by the end of 2031.
In five years, three stocks could surpass Apple in market value: SpaceX, Nvidia, and Alphabet. While Apple is currently the largest company by market capitalization, at $5 trillion, these three growth stocks have the potential to outperform. SpaceX, currently valued at $2 trillion, may soon merge with Tesla, further narrowing the gap.
CEO Elon Musk predicts SpaceX will reach a $500 billion to $1 trillion annual recurring revenue by 2027, driven by its AI infrastructure business, chip and networking investments, and Starship and Starlink initiatives. With a $10 trillion valuation, SpaceX could easily surpass Apple.
Nvidia, valued at $4 trillion, is expected to grow faster than Apple, with a forward P/E of just 13 times fiscal 2028 estimates. The company's GPUs are crucial for AI model training, and its networking, CPU, LPU, and Nemotron models are gaining traction. Nvidia is set to benefit from SpaceX's AI spending and will continue to outperform Apple on a forward P/E basis.
Alphabet, with a $4 trillion market cap, has the potential to become the largest company by 2031. As the most complete AI player, Alphabet has a significant advantage in custom AI chips with its Tensor Processing Units (TPUs). This gives it a payback period of about a year, compared to Nvidia's GPUs. Alphabet's advantages include Google Search's distribution and monetization, Chrome and Android, a search revenue-sharing deal with Apple, and its own ad network.
The company's custom AI chips and search revenue allow it to train AI models and run inference more cheaply than competitors, positioning it to surpass Apple in the next five years.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
