Apple’s market value of $3.7 trillion makes it the most valuable US company, but it lacks AI monetization. Wall Street expects its stock to trade sideways in the next year.
Amazon, currently worth $2.3 trillion, is expected to surpass Apple’s valuation if its stock price reaches $362 per share. However, this prediction is aggressive and less likely to be correct.
Amazon reported impressive Q3 financial results with 11% revenue growth and a 52% increase in GAAP earnings. The company’s e-commerce marketplace, ad tech, and cloud computing segments drive demand for AI. With a PEG ratio of 1.9, Amazon’s valuation looks reasonable compared to Apple’s.
Nvidia, currently worth $3.3 trillion, is poised to benefit from growing AI demand. Its Blackwell GPU can complete tasks up to four times faster than the previous Hopper architecture. Wall Street estimates Nvidia’s earnings will increase by 50% in the next year, making its current valuation of 51 times earnings look cheap.
Both Amazon and Nvidia have higher percentages of buy ratings than Apple and other top companies. Patient investors should consider purchasing a small position in these stocks before it’s too late.
Source: https://finance.yahoo.com/news/prediction-2-ai-stocks-worth-090000179.html