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The Rising Stars: Two Companies on a Collision Course with Apple’s Market Cap in a DecadeThe Rising Stars: Two Companies on a Collision Course with Apple’s Market Cap in a Decade

In the world of finance, a decade is but a blink of an eye. Need evidence? Look no further than history:

Company2014 Market Cap (in billions)2024 Market Cap (in billions)
IBM$182$178
Nvidia$10$2,965

Back in August 2014, IBM towered over Nvidia with a market cap that was 18 times larger. Fast forward to today, and Nvidia reigns with a mammoth $3 trillion market cap — nearly 17 times the size of IBM’s.

So, as we gaze into the crystal ball for the next decade, what companies might outshine Apple’s colossal market cap? Here are two contenders poised for a royal battle.

A lightbulb taking off like a rocket on a golden background.

Image source: Getty Images.

Microsoft’s Ascension

For a company to leapfrog Apple in the next decade, it needs a monumental market cap soaring to the heavens. Even if Apple’s market cap stays put, the rival must aim for a jaw-dropping $3.4 trillion to clinch the lead. Enter Microsoft (NASDAQ: MSFT), a stalwart in the race.

At present, Microsoft flaunts a $3.1 trillion market cap. Just in June, it orbited above Apple in market valuation. Moreover, Microsoft enjoys multiple competitive edges that may propel its market cap past Apple’s.

Microsoft treads a diversified path, dabbling in cloud computing, gaming, ads, hardware, software, social media, and artificial intelligence (AI). In contrast, Apple, rooted in hardware brilliance, faces uncertainties with plateaued iPhone sales threatening its reign, despite service and AI growth prospects.

In this marathon, Microsoft takes an advantageous stride.

Nvidia’s Ambitious Leap

I harbor hesitations regarding Nvidia presently. Its stratospheric valuation teeters perilously on flatlining sales. Nonetheless, this discourse pivots to the future horizon, where Nvidia stands ready to eclipse Apple.

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Why? Nvidia’s cornerstone — crafting cutting-edge graphics processing units (GPUs) fueling AI titans for the ensuing decade — is set on an upward trajectory unattainable by Apple.

While Apple’s iPhone sales surged annually from 2007 to 2015, the graph since froze.

A bar chart showing Apple's iPhone sales stalling after 2015.

Image source: Statista.

In contrast, Nvidia sustains growth momentum. Over two years, revenue tripled as GPUs flew off shelves like hotcakes. This trajectory shows no signs of tempering, with analysts predicting a further sales doubling to around $160 billion by 2026.

Sure, there are bumps in every road. However, in this rivalry…