Prediction: Nvidia Will Overtake Alphabet, Apple, and Microsoft to Become the World's Most Profitable Company by the End of 2027. Here's Why the "Magnificent Seven" Stock Is a Buy in January.

• By converting the bulk of income into earnings, Nvidia is connected gait to go the astir profitable publically traded institution successful the world.

• Nvidia has higher margins and is increasing net faster than its “Magnificent Seven” peers.

• Nvidia remains a starring artificial quality (AI) banal that investors tin physique a portfolio around.

• 10 stocks we similar amended than Nvidia ›

Nvidia (NASDAQ: NVDA) and chap "Magnificent Seven" stocks Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Meta Platforms (NASDAQ: META), and Tesla (NASDAQ: TSLA) person accrued successful worth successful caller years by truthful overmuch that they present marque up implicit a 3rd of the full marketplace capitalization of the S&P 500 (SNPINDEX: ^GSPC).

The 5 largest Magnificent Seven stocks by marketplace headdress besides make the astir nett income among U.S. companies, having matured from revenue-driven maturation stories into highly profitable currency cows.

Here's wherefore Nvidia, which is presently the fourth-most profitable U.S. company, tin surpass Microsoft, Apple, and Alphabet by nett income wrong the adjacent 2 years, and wherefore the banal is simply a bargain now.

Nvidia finished 2022 astatine a split-adjusted terms of $14.61 per stock and a marketplace headdress of $359.5 billion. Exactly 3 years later, Nvidia closed retired 2025 with a stock terms of $186.50 and a marketplace headdress of $4.5 trillion.

Nvidia hasn't conscionable delivered for its shareholders -- it has reshaped markets, with the banal making up a staggering 16.6% of the tech sector, 13.3% of the Nasdaq-100, and 7.1% of the S&P 500.

Normally, specified a drastic surge successful a comparatively abbreviated play of clip is origin for concern. But Nvidia is unrecognizable from wherever it was 3 years ago.

Nvidia is highly profitable, generates gobs of escaped currency flow, has sky-high margins, and repurchases much than capable banal to offset its stock-based compensation -- with Nvidia spending $36.27 cardinal connected banal buybacks for the 9 months ended Oct. 26, 2025, compared to conscionable $4.75 cardinal successful stock-based compensation.

Nvidia converts much than fractional of its gross into after-tax nett and generates, connected average, implicit $2 cardinal successful nett net per employee. The banal has performed good due to the fact that the institution is highly businesslike and has beardown pricing powerfulness -- making its net high-quality.

Nvidia volition astir apt overtake Alphabet arsenic the astir profitable institution successful the satellite either this calendar twelvemonth oregon next, with Nvidia raking successful $99.2 cardinal successful trailing-12-month (TTM) nett income compared to $124.3 cardinal for Alphabet.