Prediction: This Supercharged Artificial Intelligence (AI) Stock Could Outpace Apple and Microsoft Combined by 2030

Forget FAANG—this AI dark horse is rewriting the rules of market dominance.

THE NEXT TITAN

While Wall Street obsesses over trillion-dollar tech giants, one artificial intelligence stock quietly builds infrastructure that could eclipse Apple and Microsoft's combined market cap by 2030. We're not talking incremental growth—we're talking paradigm-shifting compute architecture that bypasses traditional hardware limitations.

THE CATALYST

Specialized neural processing units cut through energy inefficiency problems that plague conventional chips. The tech doesn't just improve existing systems—it enables entirely new AI applications previously deemed computationally impossible. Early adopters include quantum computing firms and biotech researchers running molecular simulations.

THE UPSIDE

Projections suggest a valuation trajectory that would make even the most bullish tech analyst blush. The numbers aren't pulled from thin air—they're based on contracted enterprise deployments and licensing agreements already in place. Of course, traditional finance types will call it irrational exuberance until suddenly it's not.

Remember: every market revolution looked like a fantasy until it became accounting textbook material. Sometimes the boldest bets outperform the 'safe' blue chips—especially when those blue chips are still trying to teach Siri new tricks.

Image source: Getty Images.

The AI hyperscalers are increasing their guidance for 2026 expenses

Nvidia is thriving in the world of artificial intelligence (AI). Its graphics processing units (GPUs) have become the computing hardware of choice for many AI hyperscalers due to their strong ecosystem and fantastic computing power. GPUs can process multiple calculations in parallel, making them suited for any workload that needs a lot of processing power. Historically, GPUs were used for gaming graphics, engineering simulations, and cryptocurrency mining, but their biggest use case by far is AI.

As a bullish sign for Nvidia, the AI hyperscalers aren't slowing down their spending. During its Q2 conference call,told investors it is raising its 2025 capital expenditure projection from $75 billion to $85 billion, and also commented that 2026 will see a further increase in capital expenditures.commented that it will see "significant capital expenditures dollar growth in 2026" for building out its computing capacity to meet demand.

Nvidia will be a huge beneficiary from these hyperscalers' increasing demand, but Nvidia doesn't expect it to stop in 2026.

A third-party projection cited by Nvidia during its 2025 GTC event stated that global data center capital expenditures in 2024 were around $400 billion. That number is expected to increase to $1 trillion by 2028. That's huge growth, but will it be enough to propel Nvidia past the $7.3 trillion mark by 2030?

Nvidia will rapidly grow over the next few years

If global data center capital expenditures increase at that rate, it would have a compounded annual growth rate (CAGR) of about 26%. Because Nvidia's business is heavily tied to the data center industry, we'll use that as its base growth rate figure.

Over the past 12 months, Nvidia has generated $149 billion in revenue, with a mid-50% profit margin (it dipped a bit during its last quarter due to an inventory write-down it had to take on H20 chips that were meant for China but could no longer be sold at that time due to export restrictions).

NVDA Revenue (TTM) data by YCharts

Should Nvidia achieve that CAGR over the next three and a half years, Nvidia's revenue and profits would be $335 billion and $184 billion, respectively. If we give it a forward price-to-earnings (P/E) multiple of 40 (it's currently 42), that would give Nvidia a market cap of $7.36 trillion by 2028.

The original projection was for Nvidia to reach a market cap of $7.3 trillion by 2030, and this projection exceeded that level by 2028. That leaves plenty of room for Nvidia to underperform this guidance and still achieve this lofty goal.

Nvidia is expected to remain dominant for some time, and with all the massive data center capital expenditures ongoing, Nvidia's stock will be a must-own for investors.