Which Will Win the Race to $5 Trillion: Apple or Nvidia Stock?

Core Insights - The competition between Apple and Nvidia is intensifying as both companies aim for a $5 trillion market cap, with Apple currently leading at$ 3.6 trillion and Nvidia at $3 trillion [1][2] - Apple's growth has stagnated over the past three years, while Nvidia is experiencing significant growth driven by demand for its GPUs in the AI sector [2][3] Company Performance - Apple's revenue growth is projected at only 4.6% for fiscal year 2025, with earnings per share and revenue showing minimal increases since early 2022 [4][3] - Despite sluggish growth, Apple's stock has appreciated by 36%, leading to a high valuation of 38 times trailing earnings and 33 times forward earnings [4][5] - Nvidia reported a remarkable 78% year-over-year revenue increase for Q4 FY 2025, with EPS rising by 82%, and expects Q1 revenue to be around$ 43 billion, indicating approximately 65% growth [6][7] Valuation and Market Position - Nvidia's stock is perceived as undervalued relative to its growth rate, with a lower price tag compared to Apple despite its rapid expansion [7][8] - Projections indicate that in two fiscal years, Nvidia could generate $132 billion in profits, surpassing Apple's projected$ 115 billion, suggesting Nvidia may achieve a higher valuation than Apple if growth trends continue [9][10]