To The Moon

Last night, a historic moment occurred: $NVIDIA Corp(NVDA)$ 's market value surpassed $Apple(AAPL)$ ’s, making it the world’s most valuable company.

This isn’t the first time NVIDIA has overtaken Apple. Back in June, it briefly passed Apple—though that lasted only a day. But this time, it might be different. NVIDIA could widen the gap and solidify its position as the global stock leader.

Why Is This Happening?

The reason behind NVIDIA’s rise is clear: it’s benefiting from the booming AI industry, with massive earnings growth. Meanwhile, Apple is struggling. Its latest iPhone sales are weak, and the company has little to show in terms of AI development.

Foxconn, one of Apple’s main manufacturing partners, reported sales of NT$804.9 billion (about $25.2 billion) for October—an 8.6% growth. But analysts were expecting a 15% growth for Q4, which is causing concern among investors.

On the other hand, NVIDIA’s demand is surging. According to its recent Q3 earnings, major companies like $Amazon.com(AMZN)$ $Microsoft(MSFT)$ $Meta Platforms, Inc.(META)$ $Alphabet(GOOG)$ $Alphabet(GOOGL)$ are expected to spend over $200 billion on capital expenditures this year alone—and these companies plan to increase investments in 2025.

What’s Next for NVIDIA?

Analysts expect NVIDIA’s revenue growth to hit 44% by FY2026 (2025.2–2026.1).

So, how much higher can NVIDIA go after surpassing Apple?

Currently, NVIDIA’s price-to-sales ratio stands at 35x, which is near its historical high. For comparison, during the semiconductor boom in 2021, NVIDIA’s stock peaked when its price-to-sales ratio hit 33x.

Back then, the company’s growth was driven by the mining boom and the expanding data center market. Now, the biggest driver of growth is AI—an industrial revolution-level transformation with far more potential than cryptocurrency or traditional data centers.

With higher growth prospects, NVIDIA’s valuation has reached new heights.

AI Drives High Valuation

NVIDIA’s profitability has soared. Its gross margin has jumped from 65% in 2021 to 75% today. The higher the profitability, the higher the market’s willingness to pay for the stock.

All signs point to a higher valuation. Even if NVIDIA’s valuation hits a “modest” 33x multiple based on its FY2026 forecast of $180.8 billion in revenue, its market value could still reach $4 trillion—an easy bet.

If NVIDIA’s AI-driven growth keeps accelerating, a market value of $6 trillion is not out of the question. If AI speculation mirrors the dot-com bubble of the late ‘90s, NVIDIA could easily break through the $6 trillion mark.

In short, NVIDIA’s rise is far from over—its future is bright, and the sky’s the limit.