Nvidia (NASDAQ) has become the world’s most valuable company, surpassing Microsoft (NASDAQ) and Apple (NASDAQ). Wedbush analysts predict a race to a $4 trillion market cap among these tech giants over the next year.
“Nvidia’s GPU chips are in essence the new gold or oil in the tech sector as more enterprises and consumers quickly head down this path with the 4th Industrial Revolution well underway,” Wedbush analysts stated.
Nvidia’s dominance in data centre AI spending positions it as a key player in the AI revolution, with its GPUs integral to generative AI applications. Both Nvidia and Microsoft are seen as primary beneficiaries of this trend, supporting a tech bull market for 2024/2025. Wedbush forecasts that over 70% of enterprises will adopt AI use cases in the next three years, leading to $1 trillion in incremental AI spending over the next decade.
For Apple, the AI opportunity lies in triggering a significant iPhone upgrade cycle and developing numerous apps on its AI platform, potentially creating a new AI App Store. “While Apple has been late to the game on AI, Cook & Co. have a unique advantage to monetize the AI Party in this 1995 Moment,” wrote Wedbush’s team.
