Don’t look now, but Apple (AAPL +1.48%) is closing in on Nvidia (NVDA -0.80%) for the market cap crown. The consumer tech giant is rolling this year, on the strength of accelerating revenue growth and new product rollouts. Apple stock is up 26% so far this year, more than double the market’s return. Its market cap just cracked $5 trillion.
In the other corner, Nvidia shares are up only 15% this year. The AI bellwether continues to deliver blowout financial results, but investors have rotated into memory stocks and other infrastructure plays that will benefit from the boom. Nvidia’s market cap is currently $5.2 trillion. Don’t be surprised if Apple pulls ahead of Nvidia in market cap, potentially in the final two months of this year.
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The case for Apple as the new market cap king
Apple’s revenue is accelerating for the third consecutive year. When it reports its fiscal fourth-quarter results next week, analysts expect top-line growth of 15% for fiscal 2026. It will be Apple’s first fiscal year of double-digit revenue growth since 2021.
Apple stock capping off its biggest annual growth in five years is huge. Apple’s trailing adjusted net margin topping 20% for the first time since 2012 could be even more important. Apple’s long-running push to grow into a high-margin services company is starting to bear fruit.
It also has momentum on the hardware front to make it happen. The Tim Cook era brought unprecedented operational excellence when he arrived as the CEO in the summer of 2011. It failed to deliver on revenue growth and, to a much lesser extent, innovation. This will be just the fifth year of double-digit top-line growth in his 15-year reign.
He certainly planted the seeds for all of the new products rolling out these days. The new foldable Duo iPhone is raising the bar for smartphone selling prices. Apple’s first MacBook Pro with a touchscreen was introduced this week. Cook has set up new CEO John Ternus with the tools to deliver stronger revenue growth on booming margins. It’s not surprising to see that Apple is the best performer — by far — of the “Magnificent Seven” stocks.
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NASDAQ · As of 4:00 PM ET 10/29/26
Then there’s Nvidia
Nvidia investors shouldn’t be upset when Apple flashes its high beams to pass the AI chip leader in the next couple of months. Nvidia has still had a respectable year, currently ahead of the five other Magnificent Seven names.
Nvidia stock is growing considerably faster than Apple. It’s trading for less than 13 times next year’s earnings, a more compelling valuation than Apple. Sustainability is the biggest question. Nvidia’s revenue growth and net margin are stunning today, but both can tumble at the first hiccup in the AI revolution.
I am a proud shareholder of Apple and Nvidia. I think both can continue to beat the market over the long haul. However, with Apple’s newfound momentum, it feels like the better buy as it gets ready to don the market cap crown again.
