Currently, Apple holds the title of the most valuable publicly traded company, boasting a market value of $3.6 trillion. However, based on average target prices set by Wall Street analysts, both Nvidia (NVDA) and Microsoft (MSFT) are projected to surpass that figure within the next year. This places them in a strong position to top $3.6 trillion before the close of 2025.
Among the 68 analysts following Nvidia, the consensus target price stands at $175 per share. This suggests a potential 30% increase from its current share price of approximately $134. This would translate into a market value of around $4.3 trillion.
Similarly, the 58 analysts covering Microsoft have an average target price of $510 per share, implying a 25% upside from its current share price of roughly $408. This would bring Microsoft’s market value to an estimated $3.8 trillion.
Nvidia: A Dominant Force in AI Accelerators
Nvidia’s dominance in the market for data center graphics processing units (GPUs) is a key factor. These semiconductors are essential for accelerating complex workloads such as scientific computing and artificial intelligence (AI). Analysts estimate Nvidia GPUs account for over 80% of AI accelerator sales. Moreover, according to Grand View Research, spending on AI accelerators is projected to increase at an impressive 29% annually through 2030.
While competition is emerging with companies developing custom AI solutions, analysts generally anticipate Nvidia will maintain a leading position for years to come. Vivek Arya at Bank of America estimates Nvidia will retain a 75% share of AI accelerator sales by 2030, with Christopher Rolland at Susquehanna estimating the figure at 77%.
Nvidia recently released its financial results for the third quarter of fiscal 2025, exceeding expectations in both revenue and earnings. Revenue increased by a substantial 94% to $35 billion, and non-GAAP earnings soared 103% to $0.81 per diluted share. This marks the sixth consecutive quarter of triple-digit earnings growth.
“The age of AI is in full steam, propelling a global shift to Nvidia computing,” stated CEO Jensen Huang.
Wall Street analysts project Nvidia’s earnings will increase by 49% over the next year. This makes the current price-to-earnings (P/E) multiple of 53 appear relatively attractive compared to its past performance (the average P/E ratio has been 62 in the past year). Based on these factors, the average target price of $175 per share appears realistic, suggesting Nvidia could surpass Apple’s market value before the end of 2025.
Microsoft: Leveraging its Enterprise and Cloud Leadership
Microsoft holds the position of the largest enterprise software company and the second-largest public cloud provider, based on revenue. Utilizing its established presence in these markets, Microsoft is actively monetizing opportunities in artificial intelligence.
For instance, Microsoft 365 Copilot integrates generative AI assistants within applications like Word, Excel, and Teams. Additionally, Copilot Studio enables businesses to design custom AI agents. Similarly, Microsoft Azure AI offers a suite of cloud services specifically designed to facilitate AI application development. A pivotal component is the Azure OpenAI Service, which provides customers access to large language models (LLMs) sourced from OpenAI, including those powering ChatGPT. This allows developers to fine-tune LLMs for building customized generative AI applications like customer service chatbots and sales assistants.
Microsoft delivered solid financial results in the second quarter of fiscal 2025, surpassing expectations on both revenue and earnings. Revenue increased by 12% to $69.6 billion, and GAAP earnings increased 10% to $3.23 per diluted share.
“Our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year over year,” said CEO Satya Nadella.
Wall Street anticipates Microsoft’s earnings will grow 13% during the next year. The current valuation of 33.5 times earnings appears reasonable, especially considering shares have not been cheaper in the past 15 months. This presents an opportunity for investors to acquire shares of a company typically trading at a premium.
Furthermore, considering the current valuation, the average target price of $510 per share – which would place Microsoft’s market value at $3.8 trillion, exceeding Apple’s current value of $3.6 trillion – seems a plausible outcome if the company meets or exceeds Wall Street’s earnings estimates in the coming quarters.
