Three Stocks That Could Surpass Apple in Five Years
Apple (AAPL) stands as the largest company globally by market capitalization, valued at approximately $3.6 trillion. Surpassing such a high valuation is a tall order, yet it's not impossible. A few companies have the potential to outpace Apple in terms of market value. Among these, Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOG) represent the top contenders.
This trio comprises the second, third, and fifth largest companies by market cap. What makes them likely candidates to overtake Apple in five years? The answer lies in their projected growth rates.
Apple's Growth Challenges
Over the last three years, Apple has struggled with growth, which poses a significant challenge for the company. Recent forecasts from analysts indicate a modest growth rate of only 4.6% for Apple's revenue in fiscal year 2025. This stagnation could allow other tech giants to leap ahead.
Comparative Growth Projections
In contrast, both Microsoft and Alphabet have consistently achieved double-digit growth rates over previous years, with projections suggesting they will maintain this momentum. Analysts predict the following revenue growth rates:
Company | FY 2025 Growth Rate | FY 2026 Growth Rate |
---|---|---|
Microsoft | 13% | 14% |
Alphabet | 11% | 11% |
Assuming these companies continue to grow at these rates, their projected revenues in five years, compared to Apple's expected 5% growth, would look like this:
Company | Projected Revenue in 2029 |
---|---|
Apple | $505 billion |
Microsoft | $645 billion |
Alphabet | $441 billion |
Next, to understand the profitability of these companies, we apply their profit margins to these revenue figures:
Company | Projected Profits in 2029 |
---|---|
Apple | $123 billion |
Microsoft | $228 billion |
Alphabet | $126 billion |
The projections suggest that both Microsoft and Alphabet could yield higher profits than Apple over the next five years. Such performance could elevate their market valuations past that of Apple.
As for Nvidia, the company operates in the fast-evolving artificial intelligence sector. Although predicting Nvidia's growth five years out is challenging, Wall Street estimates it could generate $243 billion in revenue in two years. Given Nvidia's profit margin of around 56%, this could translate into approximately $136 billion in profit, significantly outstripping Apple's projected earnings by 2029.
In conclusion, the slow growth trend at Apple may allow these three companies—Nvidia, Microsoft, and Alphabet—to surpass Apple in market valuation within the next five years. However, if Apple launches a successful new product that reignites its growth, the outlook could change. Persistent signs of stagnant growth at Apple remain a cause for concern.
growth, stocks, market