With a market capitalization of roughly $2.94 trillion, Apple stands as the world's most valuable publicly traded company. Its iPhone hardware continues to dominate the mobile space, and the tech giant has also continued to score big wins with its software and services offerings.
Apple has been an incredible performer through the years, and there's a very good chance it will continue to be one of the world's most profitable companies. But investors should also keep their eyes open for other big opportunities in today's market. With that in mind, read on for a look at two incredible artificial intelligence (AI) companies that have the chance to be the next Apple -- in two very different ways.
1. Microsoft could steal Apple's valuation crown
Microsoft (MSFT +0.63%) is arguably the strongest overall player in the AI race right now. With a market capitalization of roughly $2.8 trillion, it's also the world's second-largest company and is nipping at Apple's heels in a bid to take the top spot.
For a variety of reasons, I think there's a very good chance that Microsoft will exceed its rival's valuation in the near future and enjoy a sustained run as the world's most valuable company.
NASDAQ: MSFT
Key Data Points
As mentioned, Microsoft has excellent footing in the rapidly unfolding AI revolution. The company's Azure cloud infrastructure platform has become a top destination for developers and businesses seeking to build, launch, and scale AI applications.
Strengths in office productivity software, operating systems, video games, cybersecurity, virtual assistants, and other categories mean that Microsoft has many ways to win with AI. Nearly every aspect of the company's business looks poised to benefit from AI integrations and broader synergies stemming from the tech. Microsoft looks perfectly positioned for the current AI-focused business environment, and it stands to see strong growth.
There's no doubt that Apple's business will continue to be enormously profitable, but it will likely struggle to match Microsoft's sales and earnings momentum over the next five years unless it debuts at least one major highly successful new product launch. Iterative updates for the iPhone line probably aren't going to cut it.
For these reasons, I think Microsoft will soon surpass Apple to become the world's most valuable company. I also believe that the more software-focused nature of Microsoft's business and lead in AI will help its stock outperform Apple's over the next five years.
2. CrowdStrike could be a massive winner
With a market capitalization of roughly $57 billion, CrowdStrike (CRWD +2.97%) probably won't be challenging Apple in the valuation race anytime soon. But for investors who are looking for stocks that can match or exceed the market-crushing performance that Apple has delivered over the last half-decade, I believe the cybersecurity specialist stands out as a great pick.
NASDAQ: CRWD
Key Data Points
CrowdStrike's AI-powered cybersecurity platform is helping businesses and institutions fend off a rising tide of attacks. With a growing number of cyber threats now utilizing generative AI and other advanced techniques, the adaptive nature of the cybersecurity leader's platform looks perfectly suited to benefit from rising demand and industry consolidation trends.
And while CrowdStrike is unlikely to come close to Apple's valuation any time within the next decade, that could actually work to the advantage of growth-focused investors seeking explosive gains. The cybersecurity specialist's valuation is already squarely in large-cap territory, but the business is still growing sales and earnings at a rapid pace.
In the third quarter, CrowdStrike's revenue jumped 35% year over year to reach $786 million. Powered by strong sales growth and improving margins, the company's non-GAAP (adjusted) earnings per share soared 105% year over year to reach $0.82.
Crucially, the long-term demand outlook for cybersecurity services remains very promising. High-performance AI-powered software will be needed to combat next-generation threats, and CrowdStrike looks perfectly positioned to capitalize.
I'd bet on the cybersecurity specialist's stock significantly outperforming Apple's over the next five years and believe it has the makings of a huge winner for long-term investors.
