Prediction: Nvidia Will Overtake Alphabet, Apple, and Microsoft to Become the World's Most Profitable Company by the End of 2027. Here's Why the "Magnificent Seven" Stock Is a Buy in January.

Core Insights - Nvidia and the "Magnificent Seven" stocks have significantly increased in value, now comprising over a third of the S&P 500's total market capitalization [1] Group 1: Nvidia's Performance - Nvidia's share price rose from $14.61 at the end of 2022 to $186.50 by the end of 2025, resulting in a market cap increase from $359.5 billion to $4.5 trillion [4] - Nvidia accounts for 16.6% of the tech sector, 13.3% of the Nasdaq-100, and 7.1% of the S&P 500 [4] - The company is on track to become the most profitable publicly traded company globally, with higher margins and faster earnings growth than its peers [6] Group 2: Financial Metrics - Nvidia generated $99.2 billion in trailing-12-month net income, positioning it to potentially surpass Alphabet's $124.3 billion in net income [9] - The company converts over half of its revenue into after-tax profit and averages over $2 million in net profit per employee [8] - Nvidia spent $36.27 billion on stock buybacks in the nine months ending October 26, 2025, compared to $4.75 billion in stock-based compensation [7]