2 Stocks That Will Be Worth More Than Apple in 10 Years

In the world of finance, 10 Years are a blink of an eye. Want proof? Look carefully at the table below:

In August 2014, IBMThe market capitalization of was about 18 times that of Nvidia‘s (NASDAQ: NVDA). But oh, how the situation has changed. Today, Nvidia boasts a market capitalization of around $3 trillion — roughly 17 times bigger than IBM.

So, looking to the next step 10 years, what are the companies that could surpass Apple‘s huge market cap? Here are two that could make it happen.

Microsoft

If any company wants to overtake Apple in the next decade, it will need a gigantic market cap. Even assuming Apple’s market cap remains stable, this would mean a company should achieve a market capitalization $3.4 trillion to catch up with Apple.

It is a very difficult task, and There is there are only a few companies that could do it. Microsoft (NASDAQ: MSFT) is one of them.

For starters, Microsoft already has a market cap of $3.1 trillion. as I write these lines. As Recently, in June, Microsoft had a market capitalization greater than that of Apple. Additionally, Microsoft has some competitive advantages that should, over time, help the company’s market capitalization surpass that of Apple.

First, Microsoft has a more diversified business. The company is present in cloud computing, gaming, advertising, hardware, software, social media, and artificial intelligence (AI). In short, Microsoft has many paths to success. Apple, on the other hand, has traditionally benefited from its excellent hardware innovation. And while Apple’s services and AI could boost the company’s revenue, declining iPhone sales could pose a real challenge for Apple over the next decade.

In my opinion, this represents an advantage for Microsoft.

Nvidia

I have reservations about Nvidia at the momentIts very high valuation makes it vulnerable to a sharp correction if the company’s sales show any signs of slowing down. That said, this article is about what might happen over the next 10 years. And in this case, I think Nvidia is well positioned to surpass Apple.

That’s because Nvidia’s core business — making the graphics processing units (GPUs) that will power cutting-edge AI systems for the next decade — is on a long-term growth trajectory that Apple simply cannot match.

Sales of Apple’s flagship product, the iPhone, increased every year between 2007 and 2015, but have stagnated since then.

Nvidia, for its part, continues to grow. Over the past two years, the company has tripled its revenue and its GPUs have been selling like hotcakes. This growth is not likely to slow in the coming years. Most analysts expect Nvidia’s sales to double again to about $160 billion by 2026.

The story continues

Sure, there will likely be some bumps in the road as competitors take market share from Nvidia in the hot AI chip market. But even if Nvidia’s sales growth slows, it could easily close the $500 billion market cap gap between it and…