Wedbush: The three major US tech giants will compete in the AI field to enter the first $4 trillion market capitalization club

Zhitong Finance learned that Apple (AAPL.US), Nvidia (NVDA.US), and Microsoft (MSFT.US) seem to be clear leaders in the AI spending competition. Wedbush expects that within the next six to nine months, one of the seven tech giants will reach a market value of 4 trillion US dollars. Apple's current market capitalization is $3.56 trillion, followed by Nvidia's $3.23 trillion and Microsoft's $3.11 trillion.

Wedbush analysts led by Daniel Ives have made some bold and optimistic predictions about the future of AI spending and infrastructure. Ives said in an investor report: “We believe the opportunities in the entire AI infrastructure market could increase tenfold between today and 2027 as the next generation of AI infrastructure is built. We estimate the capital expenditure for artificial intelligence will reach $1 trillion over the next three years.”

As Nvidia's chips became the cornerstone of artificial intelligence computing, its position in large-scale infrastructure spending was consolidated. Wedbush sees Microsoft as another core driver of artificial intelligence. Following these two companies, the next wave of beneficiaries will include Apple, AMD (AMD.US), Dell (DELL.US), IBM (IBM.US), Oracle (ORCL.US), Palantir (PLTR.US), SEFTSE (CRM.US), and ServiceNow (NOW.US).

Ives added: “In short, we think tech stocks will rise another 20% in 2025. This tech bull market has just entered the next phase led by the AI revolution.”

Apple's opportunity

Apple is now preparing to take advantage of consumers' demand for artificial intelligence using its latest products, such as the iPhone 16 and the new iPad mini equipped with its own AI function Apple Intelligence. Despite some pessimistic reports and shipment tracking showing that iPhone demand is lower than previous releases, Wedbush expects iPhone sales to soar this year during the holiday season.

Ives added, “We continue to see further signs in the Asian supply chain that this iPhone upgrade cycle may be historic, laying the foundation for a supercycle, as we currently estimate that around 300 million iPhones worldwide have not been upgraded in more than four years. In our opinion, as the AI-driven upgrade cycle begins, Apple is likely to sell more than 240 million iPhones in FY25.”