Three Stocks That Could Surpass Apple's Valuation in Five Years

Apple (AAPL) stands as the largest company in the world, boasting a staggering market capitalization of $3.6 trillion. Surpassing such a significant valuation is no small feat, yet I believe there are a few companies with the potential to achieve this within the next five years.

The three companies in question are Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOG, GOOGL). These names shouldn't come as a surprise, as they rank as the second, third, and fifth largest companies by market cap worldwide.

Challenges for Apple: A Period of Stagnation

Apple's growth trajectory has hit a plateau over the last three years. The company's financials indicate a troubling trend, as demonstrated in the revenue growth chart.

While analysts project modest growth of 4.6% for Apple in fiscal year 2025, this stagnant performance might allow competitors to seize the opportunity to overtake Apple in terms of valuation.

Growth Projections for Rivals

In contrast, Microsoft and Alphabet have consistently demonstrated double-digit growth over several years, and forecasts for the next two years suggest this trend will continue. Analysts project growth rates of:

Company	FY 2025	FY 2026
Microsoft	13%	14%
Alphabet	11%	11%

If these growth rates hold steady, we can estimate the projected revenues for 2029, where Apple is expected to reach around $505 billion. In comparison:

Company	2029 Projected Revenue
Microsoft	$645 billion
Alphabet	$441 billion

These figures indicate that both Microsoft and Alphabet could significantly outpace Apple's revenue generation, positioning them to surpass Apple's market value, especially when considering their profitability.

Profitability Estimates

When evaluating profitability based on projected revenue, we find:

Company	2029 Projected Profits
Apple	$123 billion
Microsoft	$228 billion
Alphabet	$126 billion

With Microsoft projecting profits of $228 billion and Alphabet at $126 billion, both companies are set to outperform Apple in profit generation by a notable margin.

Nvidia's Uncertain Yet Promising Future

Predicting Nvidia's trajectory is more complex due to the rapid evolution of the artificial intelligence (AI) sector. Currently, Nvidia’s GPUs are vital in the AI industry, and its growth is remarkable. Analysts predict that Nvidia could achieve $243 billion in revenue over the next two years. With a strong profit margin of 56%, this would translate to approximately $136 billion in profits—significantly surpassing Apple's expected figures.

Conclusion: The Future Is Open

In light of Apple's slow growth, it is quite plausible that Microsoft, Alphabet, and Nvidia could surpass Apple’s valuation within the next five years. However, if Apple were to innovate and release a groundbreaking product, it may be able to regain momentum and maintain its top position. Signs of a resurgence at Apple have been limited in recent times, raising questions about its ability to sustain its market leadership.

Apple, Microsoft, Nvidia