Apple, Nvidia, Microsoft race to $4T market cap on AI splurge: Wedbush

Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT) appear as clear leaders in the artificial intelligence spending race, and Wedbush expects one of these Magnificent Seven members to reach the $4T market capitalization mark in the next six to nine months.

Apple currently has a $3.56T market cap, followed by Nvidia at $3.23T and Microsoft at $3.11T.

Wedbush analysts, led by Daniel Ives, made some bold and bullish predictions on the future of AI spending and infrastructure.

“We believe the overall AI infrastructure market opportunity could grow 10x from today through 2027 as this next-generation AI foundation gets built, with our estimates a $1T of AI cap-ex spending is on the horizon over the next three years,” Ives said, in an investor note.

Nvidia’s position in the massive infrastructure spending is solidified as its chips serve as the cornerstone of AI computing. Wedbush considers Microsoft another core driver of AI. These two companies are followed by the next wave of beneficiaries, including Apple (AAPL), AMD (AMD), Dell (DELL), IBM (IBM), Oracle (ORCL), Palantir (PLTR), Salesforce (CRM) and ServiceNow (NOW).

“In a nutshell, we believe the stage is set for tech stocks to see another 20% move higher in 2025 with this tech bull market just hitting its next phase led by the AI Revolution,” Ives added.

Apple’s opportunity

Apple is now positioned to take advantage of AI consumer demand with its latest products, such as the iPhone 16 and new iPad mini featuring Apple Intelligence. Despite several bearish reports and shipment trackers showing less demand than prior iPhone launches, Wedbush expects unit sales to spike this holiday season.

“We are continuing to see further indications across the Asia supply chain that this iPhone upgrade cycle could be a historical one, setting the stage for a supercycle as currently we estimate roughly 300M iPhones globally have not upgraded in over four years,” Ives added. “In our view, Apple could sell north of 240M iPhone units in FY25 as this AI-driven upgrade cycle takes hold.”