With a market capitalization of $3.7 billion, making it the second most valuable company in the world. Apple (NASDAQ:AAPL) remains well positioned to stay near the top of the heap.
However, while the “apple” may not necessarily fall far from the tree anytime soon, here’s how some other “Magnificent Seven” stocks could become more valuable than the iPhone maker: Amazon (NASDAQ:AMZN) and Metaplatforms (NASDAQ: META).
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Both, already among the largest technology companies, are aggressively capitalizing on the growth trend of generative artificial intelligence (AI). From this trend, each could produce economic returns high enough to justify market caps higher than Apple’s by 2035.
Few may consider Amazon a leader in AI, but this perception could change in the coming years. The company, already a dominant player in the cloud computing market through its Amazon Web Services (AWS) division, is benefiting from increased demand for enterprise computing power.
Better yet, it is not just through AWS that Amazon is using AI technology not only to compete, but to dominate a market. Amazon continues to strengthen its advertising business. The advertising business, once a “managed” business unit, now generates nearly $60 billion in annual sales. AI has also proven to be critical to further growth and profit maximization of Amazon’s legacy retail business.
Putting it all together, it’s easy to see that Amazon will surpass Apple in the next 10 years. With a market capitalization of $2.27 trillion, the company definitely has its work cut out for it in terms of outsized growth, but it’s within the realm of possibility.
Meta Platforms, the parent company of Facebook and Instagram, was actually one of the technology companies that benefited most quickly from the arrival of generative AI. Rapidly pivoting from the metaverse to AI starting in late 2022, by 2023 the company saw a resurgence in growth as the integration of this cutting-edge technology led to greater monetization of its social media platforms through advertising. That year, revenue increased 16% and earnings per share increased 73%.
With a current market cap of just $1.4 trillion, Meta has to make an even bigger leap than Amazon to eclipse Apple’s market cap. Still, give Meta a decade and this could well be achieved. Already starting to monetize AI in areas beyond online advertising, such as with AI-enhanced wearables, if Meta can continue to develop more stable AI-related revenue streams than those in the cyclical advertising market, not only could the stock rise with higher profitability, but the company’s valuation could rise as well.