Today, Apple is the most valuable public company, with a market value of $3.6 trillion. However, the average target price set by Wall Street analysts suggests nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) It will give businesses a good shot of surpassing that number next year and surpassing $3.6 trillion by the end of 2025.
Of the 68 analysts following NVIDIA, the average target price is $175 per share. This means a 30% increase from the current share price of $134. It also means a market value of $4.3 trillion. Of the 58 analysts following Microsoft, the average target price is $510 per share. This means a 25% increase from the current share price of $408. It also means a market value of $3.8 trillion.
Here’s what investors should know about these artificial intelligence stocks:
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NVIDIA: 30% upside implied by Wall Street average price target
Nvidia dominates the market for data center graphics processing units (GPUs) for semiconductors (GPUs) used to accelerate complex workloads such as scientific computing and artificial intelligence (AI). Analysts estimate that over 80% of AI accelerator sales are NVIDIA GPUS accounts. According to Grand View Research, AI accelerator spending is projected to increase by 29% each year through 2030.
Nvidia may recognize some market share as companies are exploring Broadcom’s custom AI solutions, but analysts generally hope that chipmakers will remain dominant for many years. It’s there. By 2030, Bank of America’s Vivek Arya estimates that Nvidia will account for 75% of AI accelerator sales, while Susquehanna’s Christopher Rolland gives that figure at 77%.
Nvidia reported its financial results for the third quarter of fiscal year 2025, surpassing top and bottom top estimates. Revenues rose 94% to $35 billion, while non-GAAP (Generally Accepted Accounting Principles) revenues rose 103% per diluted share to $0.81. This was the sixth quarter when Nvidia recorded triple-digit revenue growth. “The AI era is all about it and we are driving a global shift to Nvidia computing,” said CEO Jensen Huang.
Wall Street estimates Nvidia’s revenue will increase by 49% over next year. This makes the (P/E) multiple 53 earned from the current price seem relatively inexpensive, with an average P/E ratio of 62 over the past year. From its starting point, the average target price of $175 per share is very plausible. This means that Nvidia could easily surpass Apple’s current market value by the end of 2025.
Microsoft: 25% upside implied by Wall Street average price target
Microsoft is the largest enterprise software company measured in revenue and the second largest public cloud. The company is leveraging its strong presence in these markets to monetize artificial intelligence. For example, Microsoft 365 Copilot is a generator AI assistant built into applications such as Word, Excel, and Teams, and Copilot Studio allows businesses to design custom AI agents.
Similarly, Microsoft Azure AI is a suite of cloud services that drive the development of AI applications. One component is especially important. Through the Azure Openai service, the company provides access to large-scale language models (LLMS) from Openai, including Power ChatGpt. Developers can tweak these LLMs to build custom-generated AI applications such as customer service chatbots and sales assistants.
Microsoft reported reasonably good financial results in the second quarter of fiscal year 2025, breaking top and bottom top estimates. Revenues rose 12% to $69.6 billion, while GAAP revenues rose 10% per diluted share to $3.23. “Our AI business exceeds its annual revenue drive rate of $13 billion, an increase of 175% year over year,” said CEO Satya Nadella.
Wall Street expects Microsoft’s revenue to rise by 13% next year. In comparison, the current valuation of 33.5x revenue is reasonable. In fact, the stocks have not been that cheap at any point in the last 15 months. This means that investors usually have a very compelling opportunity to buy stocks that trade at premiums.
Furthermore, from our current valuation, the average target price per share is $510. This brings Microsoft’s market value to $3.8 trillion, while Apple’s current market value is $3.6 trillion. Estimates of revenue for the next few quarters.
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Bank of America is the advertising partner of Motley Fool Money. Trevor Jennewine has a position as Nvidia. Motley Fool has positions in and recommends Apple, Bank of America, Microsoft and Nvidia. Motley Fool recommends Broadcom and the following options are recommended: A $395 call at Microsoft for January 2026 and a $405 call at short term Microsoft for January 2026. Motley Fools have a disclosure policy.
The views and opinions expressed herein are the views and opinions of the authors and are not necessarily Nasdaq, Inc. It does not reflect the opinions of
