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Apple and NVIDIA Set to Break $4 Trillion Barrier by 2025 in AI Race

Word on the StreetSunday, Oct 27, 2024 10:00 pm ET

1min read

Wedbush Securities analyst Dan Ives has projected that Apple Inc. will become the first company to reach a market capitalization of $4 trillion by 2025, followed by NVIDIA Corp.

The firm emphasizes Apple's substantial ecosystem, noting over 2 billion iOS devices globally, with about 300 million iPhones due for an upgrade. Apple's service business alone is valued at $2 trillion, and the company is poised to capitalize on AI advancements through its ecosystem.

Wedbush maintains an "outperform" rating for Apple, setting a price target of $300. The AI-driven upgrade cycle could push iPhone sales to over 240 million units in 2025, potentially marking Apple's highest sales year to date, with a strong focus on the Chinese market expected to contribute 100 million sales.

Significantly, the upcoming iOS 18.2 update is highlighted as a transformative step in Apple's AI journey. Wedbush forecasts that new chips and hardware releases centered around AI infrastructure will propel Apple's future.

Regarding NVIDIA, Wedbush predicts it will follow Apple into the $4 trillion market cap club by 2025. Recent fluctuations in company valuations saw NVIDIA briefly surpass Apple as the world's most valuable company, driven by its dominant position in the AI chip market.

NVIDIA's market cap has surged more than twofold over the past year, reflecting its burgeoning role in the AI sector. This rapid growth underscores both companies' central positions in the AI investment landscape, as they continually lead in technological innovation and market influence.

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