Prediction: 2 AI Stocks Will Be Worth More Than Apple Stock by the Year's End in 2025

Apple's Market Position and AI Monetization - Apple holds the title of the most valuable US company with a market value of $3.7 trillion as of Dec 31 [1] - Apple has not yet demonstrated significant ability to monetize artificial intelligence compared to other big tech companies [1] Wall Street Expectations for Apple - Wall Street expects Apple stock to trade sideways over the next year with a median 12-month target price of $250 per share implying downside from the current price of $251 [2] - Amazon and Nvidia have potential to surpass Apple's current valuation [2] Amazon's Financial Performance and Growth Prospects - Amazon reported Q3 revenue growth of 11% to $159 billion driven by strong advertising and cloud computing sales [4] - Operating margin expanded by over 3 percentage points and GAAP earnings rose 52% to $1.43 per diluted share [4] - Amazon's investment thesis is supported by its dominant e-commerce position third-largest ad tech company status and leadership in public cloud services [5] - Wall Street estimates Amazon's earnings will increase 26% in the next 12 months with a current valuation of 47 times earnings and PEG ratio of 1.9 [6] - Amazon's market value could reach $3.8 trillion if it exceeds earnings estimates [6] Nvidia's Financial Performance and Growth Prospects - Nvidia reported Q3 fiscal 2025 revenue growth of 94% to $35 billion driven by strong data center segment sales [8] - Non-GAAP net income increased 103% to $0.81 per diluted share [8] - Nvidia's GPUs are considered the gold standard for AI infrastructure with the upcoming Blackwell GPU offering significant performance improvements [9] - Wall Street estimates Nvidia's earnings will increase 50% in the next 12 months with a current valuation of 51 times earnings [10] - Nvidia's stock could return 16% if earnings meet expectations and potentially more if they exceed estimates [10] Market Value Projections for Amazon and Nvidia - Amazon's market value would need to increase by 65% to $362 per share to reach $3.8 trillion [11] - Nvidia's market value would need to increase by 16% to $156 per share to reach $3.8 trillion [11] Investor Sentiment for Amazon and Nvidia - Amazon has one of the highest percentages of buy ratings among S&P 500 companies with only four companies having higher buy ratings [7] - Nvidia also has strong buy ratings with only six S&P 500 companies having higher percentages of buy ratings [12]