Prediction: 2 AI stocks will be worth more than Apple shares by the end of 2025

Apple is currently the most valuable listed company in the world with a market value of $3.9 trillion. The company has held this title for almost a decade, but has yet to prove that it can monetize artificial intelligence (AI). Therefore, I think the following two AI stocks can outperform Apple’s current market value before the end of 2025:

• Nvidia (NVDA 0.39%) is currently worth $3.4 trillion. The stock price would need to rise 17% next year for the company to reach a market value of $4 trillion.
• alphabet (GOOGL 0.76%) (GOOG 0.81%) is currently worth $2.4 trillion. The stock price would need to rise 67% in the next year for the company to reach a market value of $4 trillion.

Admittedly, my first prediction is a bit conservative and my second prediction is very aggressive. Here’s what investors should know about these AI stocks.

Nvidia: 17% implies upside potential before the end of 2025

Nvidia was the cornerstone of the artificial intelligence (AI) boom. Its graphics processing units (GPUs) are the industry standard for accelerating complex data center workloads, and the company dominates the market for InfiniBand networks, which are currently the preferred connectivity technology for back-end networks in AI data centers.

The company reported excellent financial results in the third quarter of fiscal 2025, which ended in October 2024. Revenue increased 94% to $35 billion due to particularly strong momentum in the data center segment, supported by strong revenue growth in the automotive and robotics segment. Meanwhile, non-GAAP net income doubled to $0.81 per diluted share.

Nvidia has a major catalyst on the horizon with the launch of its Blackwell GPU. Compared to the previous Hopper chip, Blackwell can complete AI training tasks up to 4 times faster and AI inference tasks up to 30 times faster. Production ramped up in the current quarter, so Nvidia should see significant Blackwell sales next year.

Morgan Stanley expects cloud AI semiconductor spending to increase by more than 50% next year. This paves the way for robust profit growth for Nvidia. In fact, Wall Street expects its adjusted earnings to rise 50% over the next four quarters. This consensus makes the current valuation of 53 times adjusted earnings look cheap.

Nvidia stock needs to reach $164 per share for the company to have a market value of $4 trillion. It will reach that mark if it meets Wall Street’s earnings estimates and shares trade above 42 times earnings, which would represent a big discount to current valuation. Personally, I would be surprised if Nvidia doesn’t break $4 trillion in 2025.

Alphabet: 67% implied upside before end-2025

Alphabet has two key growth engines in digital advertising and cloud computing. It is the largest ad tech company in the world due to the popularity of Google Search and YouTube. And Google operates the third largest public cloud behind it Amazon And Microsoft. In both segments, the company relies on AI to create new monetization opportunities.

These efforts resulted in encouraging financial results in the third quarter. Revenue rose 15% to $88 billion, a sequential acceleration from 14% growth in the previous quarter. Operating margin increased 4 percentage points as the company continued to reshape its cost base, and GAAP net income rose 37% to $2.12 per diluted share.

Wall Street expects earnings to rise 15% over the next four quarters. This estimate, divided by the current valuation of 25 times earnings, yields a price-to-earnings-growth (PEG) ratio of 1.8. That’s a significant discount to Microsoft’s PEG ratio of 4, but I think the market will offer Alphabet a higher multiple once the company has more insight into regulatory issues.

More specifically, a federal judge ruled in August that Alphabet acted unlawfully to maintain its monopoly on Internet search, and the Justice Department wants Alphabet to sell its Chrome browser. That would almost certainly hurt its share of the search market, which likely explains the valuation differences between Alphabet and Microsoft. In other words, without regulatory issues, Alphabet could have a higher multiple.

However, Federal Judge Amit Mehta will rule on the remedy in August 2025, so the regulatory issues could potentially be resolved before the end of the year. Many analysts expect the solution to be less severe than what the Justice Department has proposed because (1) historical precedent makes a breakup unlikely and (2) the Justice Department under President-elect Donald Trump may propose a less extreme solution strives for.

In this scenario, I think the market could afford Alphabet a PEG ratio of 2.6. That implies a share price of $326 based on projected earnings of $8.96 per share in 2025, implying a market value of $4 trillion.

Many things would have to go right for Alphabet to reach this mark next year, but patient investors should feel comfortable buying a position today in any case.