Nvidia and Microsoft have ushered in a new era, forming the $4 trillion stock club. Apple, the first to hit $3 trillion in 2023, $2 trillion in 2020, and $1 trillion in 2018, now trails behind. With Nvidia eyeing a $5 trillion valuation, Apple, at a $3.4 trillion market cap, is the world’s third-largest company. Can it close the gap?
Jennifer Saibil for The Motley Fool:
Nvidia has had a mind-blowing ascent as the premier designer of the graphics processing units (GPU) that are necessary for generative artificial intelligence (AI). It has evolved from a somewhat obscure chipmaker for the gaming industry into a household name that’s associated with the AI revolution.
In the fiscal 2026 first quarter (ended April 27), revenue increased 69% year over year, which is outstanding for a company of its size. At the current price, it trades at a forward, 1-year P/E ratio of 31. It’s debatable how expensive that is, but it’s not astronomical, giving it even further room to run. It could easily reach a $5 trillion market cap before the year is out.
Microsoft is a Nvidia client, and it’s also a leader in software and increasingly, cloud services. It’s also investing in AI throughout its business, especially in creating large language models (LLMs) and offering LLM services to developers and clients in its cloud business. Total revenue increased 18% year over year in the 2025 fiscal fourth quarter (ended June 30), and revenue from its Azure cloud segment was up 34% in the quarter. Microsoft stock trades at a forward, 1-year P/E ratio of 29…
[A]t the current price, AAPL is not cheap at all, trading at 29 times forward, 1-year earnings, just like Microsoft.
On top of that, investors haven’t been impressed with Apple Intelligence. While the other tech giants have been launching exciting and revolutionary AI-based features and tools, Apple’s AI hasn’t excited users. However, CEO Tim Cook stressed on the third-quarter earnings call two weeks ago that Apple is going to significantly increase its investments in AI.
Apple stock has tumbled several times in the past as well, and it has always bounced back to new heights, bypassing the has-been lane. It’s well-positioned right now to leverage its massive user base with improved technology, and there’s a good chance that a rebound is just around the corner. I wouldn’t count it out from joining the $4 trillion club soon.
MacDailyNews Take: Apple, currently valued at $3.437 trillion, will get there, eventually.
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