In August of 2021, a firm made a bold prediction that Nvidia would surpass Apple in valuation. At the time, Nvidia had a market cap of $550 billion compared to Apple’s $2.5 trillion market cap. The prediction was based on Nvidia's leadership position in AI and its rapid growth in the data center market.
Fast forward to the present, Nvidia has surpassed a $2 trillion market cap compared to Apple’s $2.8 trillion, overtaking other tech giants like Amazon, Google, Tesla, Meta, and Netflix. The only remaining hurdle is Apple, and there are 2.5 years left to fulfill the prediction.
Nvidia's growth has been remarkable, with its market cap increasing over 1,500% since November 2018. The company's data center revenue has seen exponential growth, surging more than 676% from $2.37 billion in fiscal Q2 2022 to $18.40 billion in fiscal Q4 2024.
Comparing Nvidia's revenue growth to Apple's, Nvidia has outpaced Apple significantly, with a 240% total increase since August 2021 compared to Apple's 43% increase. Nvidia's data center revenue is expected to continue its upward trajectory, with estimates ranging from $22.8 billion to $36.4 billion by fiscal Q4 2025.
Furthermore, Nvidia's margins have strengthened, with gross margin expanding to 76.7% in fiscal Q4. The company's operating margin has also improved significantly, nearly doubling that of Apple. Nvidia's earnings per share (EPS) have surged by almost 400% since August 2021, showcasing its impressive financial performance.
While Apple leads in cash reserves and cash generation, Nvidia is rapidly catching up. Nvidia's operating cash flow grew 400% YoY to $28.1 billion, with free cash flow up 690% YoY to $27 billion. Nvidia's margins are now stronger than Apple's, indicating its financial health.
In conclusion, Nvidia's rapid growth in the data center market, strong financial performance, and strategic positioning in AI technology suggest that it is on track to become the world's most valuable company in the next 2.5 years, surpassing even tech giant Apple.
