Why Nvidia’s AI Dominance Will Cement Its Market Cap Supremacy Over Apple

The tech industry’s next great milestone is here: Nvidia (NVDA) has officially surpassed Apple (AAPL) in market cap, marking a seismic shift toward AI-driven infrastructure. With a market valuation of $3.29 trillion as of May 2025, Nvidia has eclipsed Apple’s $3.27 trillion, a symbolic victory fueled by its stranglehold on the AI chip market and Apple’s stagnation in legacy hardware. This isn’t a fleeting surge—it’s the beginning of a new era. Here’s why investors should double down on Nvidia’s AI leadership.

The AI Infrastructure Tsunami: Why Nvidia’s Lead Is Unassailable

Nvidia’s data center GPU market share stands at 85%, a near-monopoly enabled by its Stargate Project—a breakthrough architecture that slashes energy costs for large language models (LLMs) by 25x. This technology is now the backbone of hyperscaler AI infrastructure, with Microsoft, Alphabet, and Meta committing $14 billion+ in 2025 to Stargate-driven projects. Analysts at BofA estimate sovereign AI deals (e.g., partnerships with Saudi Arabia’s Humain) could add $50 billion annually to Nvidia’s top line by 2026.

Margin Resilience and Undervalued Multiples: A Growth Stock’s Dream

While Apple trades at a 28.7x forward P/E, Nvidia’s 24.8x multiple remains a steal despite 48% earnings growth forecasts. Despite geopolitical headwinds, Nvidia’s gross margins held steady at 75% in Q1 2025, defying expectations. Its Stargate chips generate $75 billion in projected FY2026 revenue, a 100% jump from 2024. Contrast this with Apple’s iPhone-centric model, which faces mid-single-digit revenue growth as AI features in iOS 18.2 underwhelm users.

Apple’s Stagnation and Legal Risks: A Recipe for Decline

Apple’s $3.27 trillion valuation hinges on a mature ecosystem with no game-changers in sight. Its antitrust lawsuit with the U.S. DOJ—now nearing a ruling—could force structural changes to its App Store, a $30 billion revenue stream. Meanwhile, stagnant iPhone sales (down 3% YoY in Q1 2025) and lukewarm demand for Apple Intelligence highlight a lack of urgency in AI innovation. Apple’s stock trades at a 38x trailing P/E, a premium its sluggish growth cannot justify.

The Bottom Line: Buy Nvidia Before the AI Surge Accelerates

Nvidia isn’t just a chipmaker—it’s the operating system of AI. With Stargate contracts fueling a $1 trillion data center capex boom by 2028 and geopolitical tailwinds from lifted U.S. export restrictions, its $3.29 trillion market cap is just the start. At a 24.8x P/E, Nvidia offers 33% upside to $5 trillion by 2026, while Apple’s valuation faces contraction risks.

Act now: The AI revolution is here. Nvidia’s dominance isn’t a bet—it’s a certainty.

Investors who ignore this shift risk missing the next decade’s biggest wealth creator. Secure your stake in the future of technology—buy Nvidia.