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Nvidia has held this position as the world's largest company since a year ago, when it became the first to reach $4 trillion in market value. Former Apple and Microsoft leaders stepped up. But in recent days, Apple, which did not rise as much as its peers during the artificial intelligence (AI) boom, has been making a comeback.
And on July 17, Apple even slipped ahead of Nvidia to become – at least for part of the trading session – the world's largest company. However, at the end of the day, Nvidia returned to the lead with a value of $4.9 trillion. That compares to $4.89 trillion for Apple.
As these tech giants vie for the position as the world's largest company, which is the best buy now? Let's find out.
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Apple even jumped ahead of Nvidia on July 17 to become – at least for part of the trading session – the world's largest company. (Adam Gray for Fox News Digital)
Nvidia's case
Nvidia stock has risen more than 300% in the past three years amid excitement about its position in the AI market. The company is the No. 1 designer of graphics processing units (GPUs), the chips used to power AI development and applications. These strengths, along with Nvidia's comprehensive portfolio of related products and services, have generated double- and triple-digit earnings growth in recent years.
For example, in the most recent quarter, Nvidia's revenue increased by 85% to more than 81 billion dollars, and this was at the highest level of profit from sales, as we can see from the company's cash flow ratio – that number exceeded 70% quarter after quarter.
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Nvidia stock has risen more than 300% over the past three years. (Patrick T. Fallon/AFP via Getty Images)
Nvidia focuses on innovation, promising to update its GPUs every year, and this has helped it to continue. The company is also steadily expanding its reach to make it the go-to place for anything AI. In a recent quarter, Nvidia announced the upcoming release of its first central processing unit (CPU), a move that opens the door to a $200 billion market.
Investors have piled into Nvidia stock in recent years, understanding that an investment in the company should position them to benefit from the AI revolution.
The Apple case
Apple's shares have advanced – but not as much as Nvidia's. Over the past three years, Apple has risen nearly 70%. The company has been slower to invest in and implement AI than many of its peers — for example, it started rolling out AI features to all of its devices in the fall of 2024, and the rollout is ongoing. Therefore, investors looking to tap into potential AI leaders turned their backs on Apple and opted for companies that were heavily investing in the space.
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This trend, however, has not hurt Apple's earnings growth. In fact, the company has proven itself to be a player that investors can count on for progress in this area. Apple has a great moat, or competitive advantage, and this is its brand – customers love the iPhone and won't switch easily. In the first quarter, the iPhone 17 was the best-selling smartphone in the world, according to Counterpoint Research.
Apple shares are up nearly 70% over the past three years. (Apple Inc./Reuters)
Apple is also benefiting from its services sales, with services revenue reaching records quarter after quarter. After building more than 2.5 billion active devices over the years, Apple can now rely on these devices for recurring revenue. If customers subscribe to digital entertainment or storage, for example, this represents a common revenue stream for the company.
Today, investors may turn to Apple as they see this potential and as they seek an alternative to companies heavily exposed to AI.
Buy better?
Nvidia and Apple have proven their financial prowess and leadership over time. So even it makes a solid long-term investment. But if you could only choose one to buy right now, which one should you go for?
Nvidia clearly beats Apple when it comes to computing. At these rates, the chip giant looks cheap, especially considering the AI empire it has built and its long-term prospects in the field. It's important to note that even if AI stocks are temporarily down, the AI story remains strong, with the technology already being used in many areas.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| AAPL | Company APPLE INC. | 326.59 | -7.15 |
-2.14% |
| NVDA | The company NVIDIA CORP. | 203.28 | +0.47 |
+0.23% |
So now is a good time to get into Nvidia at these levels. That said, cautious investors looking to avoid any AI upheavals may still opt to pick up Apple shares, as even at today's levels, the stock has room to run.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Apple, Microsoft, and Nvidia. The Motley Fool has disclosure policy.
