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Nvidia should pass Alphabet as the world’s most profitable company.
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Nvidia will cross the $6 trillion market cap threshold in 2026.
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Nvidia (NASDAQ: NVDA) is a company like no other. It has dramatically risen to become the world’s largest company by market cap and is growing at a rate that no other trillion-dollar company has ever achieved.
Furthermore, it won’t be done growing anytime soon. Nvidia’s stock isn’t in a bubble; it’s a real company generating real profits, growing at an unbelievable pace.
I think the company is set to make history in 2026 on two fronts, and I think both are fantastic reasons to buy the stock now.
Currently, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is the world’s most profitable company. Over the past 12 months, Alphabet generated nearly $125 billion in profits, while Nvidia was just shy of $100 billion.
NVDA Net Income (TTM) data by YCharts. TTM = trailing 12 months.
While Alphabet is growing at a solid pace, it’s nothing compared to Nvidia. For 2026, Wall Street analysts expect Alphabet’s revenue to rise at a 14% rate. For fiscal year 2027 (ending January 2027), these analysts expect Nvidia’s revenue growth to be a jaw-dropping 50%. Assuming that no events tank either company’s profit margins, and they can maintain the same level they have over the past 12 months (Alphabet’s was 32%, and Nvidia’s was 53%), Nvidia will pass Alphabet as the world’s most profitable company.
For next year, Alphabet would generate about $146 billion in profits, while Nvidia racks up $170 billion. That’s a huge milestone for Nvidia to achieve, and if future data center buildout projections are to be believed, Nvidia’s profits could rocket higher in the years beyond 2026. Nvidia believes that global data center capital expenditures will reach $3 trillion to $4 trillion by 2030. With its graphics processing units (GPUs) comprising up to half of those costs, there is a huge potential market for Nvidia to grow into over the next few years.
This new profitability level will also cause Nvidia to make history in another way.
Nvidia was the first $5 trillion company but has since pulled back from that level and sits at about a $4.6 trillion market cap. However, if Nvidia’s projected growth pans out, it won’t stay there long. Should Nvidia’s market cap stay put and it deliver the $170 billion in profits investors expect, that would value Nvidia’s stock at 27 times earnings. While 27 times earnings isn’t necessarily cheap by itself, it fails to factor in the massive growth investors expect for the artificial intelligence market.