Prediction: 3 Stocks That'll Be Worth More Than Apple 5 Years From Now

5 days ago

Apple (NASDAQ: AAPL) may be the world's largest company, with a $3.4 trillion market cap, but that doesn't mean it will retain that place forever. Some cracks in Apple's armor could make it vulnerable, allowing other companies to pass Apple in market cap.

Here are three stocks that could be worth more than Apple five years from now.

What's wrong with Apple?

Apple isn't the company it used to be. It used to be at the forefront of innovation and consistently released game-changing products. It hasn't done that for some time, and even the latest iPhone (iPhone 16) seems to be struggling despite its much-hyped Apple Intelligence features.

All of this adds up to a business that hasn't grown its sales since 2022.

AAPL Revenue (TTM) Chart

AAPL Revenue (TTM) Chart

Despite that, Apple's stock fetches a premium valuation, trading for 30.5 times forward earnings.

That's a premium price tag for a company that hasn't grown at all, leaving it susceptible to other stocks surpassing it. If it doesn't show growth soon, the premium will not be maintained.

Plenty of other stocks could surpass Apple if this happens, and all of them are likely better investments right now.

Nvidia and Alphabet are within striking distance

Five years from now, the three companies that I think can pass Apple are Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). These three are obvious choices, as they round out the rest of the top four largest companies in the world.

Understanding why these three could surpass Apple is key, as they all have different reasons.

Starting with the second-largest company, Nvidia, it is nipping at Apple's heels. It's only 5% away from dethroning Apple, and with the massive demand for its graphics processing units (GPUs) used for artificial intelligence (AI) model creation, it's nearly a surefire bet to be larger than Apple.

Despite its incredible growth this year, Wall Street still expects 42% revenue growth for fiscal year 2026 (ending January 2026). That far exceeds anything Apple will put up, but Nvidia trades for 47 times forward earnings -- a far greater price tag than investors are paying for Apple.

It will take some time for this premium to come down, but I think it's possible over the course of five years.

Microsoft is next in line, only 11% away from the top spot. Microsoft has been a stalwart, growing revenue by more than 15% over the past year. It also rides on the back of AI, with its cloud computing division, Azure, leading the way for the company. It trades for 31.5 times forward earnings, nearly identical to Apple's price tag.

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