Amidst the turbulence of the financial markets, one company has been soaring to unprecedented heights – Nvidia. The chipmaker has embarked on a monumental bull run, witnessing its stock surge by a staggering 762% since the dawn of 2023. In comparison, even tech behemoth Apple’s stock rise of 80% pales in comparison to Nvidia’s ascent. The juxtaposition of their growth is indeed remarkable, given that Apple reigns as the world’s most valuable company with a market cap of $3.5 trillion. Nvidia, however, has clinched a groundbreaking milestone by becoming the first chipmaker to breach the $3 trillion market cap, securing the third position among the most valuable companies worldwide, just trailing the likes of Microsoft.

Nvidia’s fleeting moment of glory earlier this year, where it momentarily surpassed Apple in market cap, hints at a larger narrative. The chipmaker’s consistent outperformance in growth against Apple indicates that it’s not a question of ‘if’ but ‘when’ Nvidia will ascend to a valuation eclipsing that of Apple. Furthermore, Nvidia’s undisputed dominance in the chip market, coupled with its relentless drive to outstrip competitors, suggests that the day Nvidia surpasses Apple might be closer than many anticipate.

The meteoric rise of Nvidia can be largely attributed to its supremacy in artificial intelligence (AI). The company’s Graphics Processing Units (GPUs) have emerged as the hardware of choice for developers globally, with Nvidia commandeering an estimated 70% to 95% share of the AI chip market. Amidst the landscape where competitors such as Advanced Micro Devices and Intel have entered the fray with their own offerings, Nvidia has not only held its ground but catapulted its earnings to new heights.

Charting Nvidia’s financial trajectory against its peers unveils a stark dichotomy. Over the past year, Nvidia has surged ahead, boasting significantly higher revenue, operating income, and free cash flow than its closest competitors. This financial prowess positions Nvidia as the frontrunner in continual reinvestment in cutting-edge technology, ensuring it maintains its lead in the realm of AI.

Delving into historical chip trends provides a glimpse into the future landscape of the industry. Nvidia’s stronghold in the discrete desktop GPU market has steadily expanded from 65% in 2014 to a dominating share of 88% this year. Even in the face of AMD’s investments in the sector, Nvidia’s ascent has been unwavering, with AMD’s share dwindling from 35% to a mere 12% over the same period.

A parallel narrative unfolds in the realm of Central Processing Units (CPUs). While AMD’s CPU market share has surged from 18% to 33% since 2017, Intel has managed to retain its lion’s share, standing at 64% as of the first quarter of 2024. These historical trends signal the arduous journey that Nvidia’s competitors face in their quest to challenge the company’s dominance. Therefore, the prospect of Nvidia maintaining its stronghold in AI GPUs for years to come seems increasingly likely.

Meanwhile, the tides have been shifting for Apple, especially in crucial markets like China. The tech giant witnessed a precipitous 24% decline in iPhone sales, while homegrown competitor Huawei’s smartphone sales skyrocketed by 64%. Apple’s response to the market upheaval included significant discounts on its iPhones, highlighting the precarious nature of its dominance in certain regions.

In contrast, Nvidia’s meteoric rise shows no signs of abating. While Apple has experienced commendable stock growth recently, Nvidia’s entrenched position in AI and superior financial resources vis-a-vis its adversaries position it favorably to potentially overtake Apple by 2025.

For investors eyeing a stake in Nvidia, prudent consideration is paramount. The acclaimed Motley Fool Stock Advisor team recently unveiled their top picks for investors, omitting Nvidia from the list. The omitted stocks are projected to yield substantial returns in the coming years, underlining an intriguing investment landscape.

Reflecting on Nvidia’s prior inclusion in their recommendations back in 2005 and the staggering return of $774,281 from a $1,000 investment underscores the company’s remarkable growth trajectory. The Stock Advisor service, with its track record of outperforming the S&P 500, presents a compelling case for investors seeking lucrative opportunities.