Apple Is the World’s Largest Company, and Nvidia Is Second. Here’s What $10,000 Invested in Each Today Could Be Worth by the End of Next Year.

After news broke that Nvidia (NASDAQ:NVDA) CEO Jensen Huang admitted to having an affair with a tech company executive who is now accused of being a Chinese spy, the market heavily sold off the stock. After a series of further revelations and allegations, and Huang’s announcement on Thursday that he was resigning from the top job at the company he co-founded, the shares are now down around 30% from their all-time high,

Its plunge over the course of the past month has cost the chipmaker its position as the world's largest company.

In its place, Apple (NASDAQ:AAPL) has regained the title, and now holds it by a pretty wide margin. As of the close of trading Thursday, Apple had a $5.1 trillion market cap, while Nvidia's sat at $4 trillion.

Yet the market is always shifting. What might a $10,000 investment in each of these tech giants be worth by the end of 2027?

Image source: Getty Images.

Apple has thrived through CEO transitions

Apple isn't a new company by any means. It went through a much-scrutinized CEO transition when co-founder Steve Jobs resigned in 2011, but it came out of the Tim Cook era stronger than ever. While the jury is still out on new CEO John Ternus, Apple is such a strong company that he will likely do just fine.

I think stories like this are what Nvidia investors should cling to with Huang stepping down. True, he has been a visionary leader, but the reality is that Nvidia is loaded with talent and someone can likely replace him and keep the ship on course — even if that person turns out not to be interim CEO Colette Kress, Nvidia’s well-respected CFO.

As a result, I think investors should view this month’s sell-off as a buying opportunity, as it has likely been overdone.

Apple's stock is expensive compared to Nvidia's

These two trade at very different price-to-earnings ratios. Apple is almost twice as expensive, with a P/E of 39, while Nvidia’s is now 21.

NVDA PE Ratio data by YCharts

Furthermore, Wall Street analysts expect much greater growth out of Nvidia over the next few years. For its fiscal 2027, which began Sept. 27, Wall Street expects Apple to grow by 15%. For Nvidia's fiscal 2028, which will begin in late January 2027, they expect Nvidia to grow at a 68% pace. That huge mismatch means the gap in their valuation figures will be even more exaggerated by the end of next year.

So, what would $10,000 investments made in Nvidia and Apple today look like by the end of next year?

For Apple, I expect a $10,000 investment will be worth roughly the same. The reality is that Apple is trading near the top of its historical valuation range, and I don't think it’s likely to get much more expensive. As a result, its earnings growth over the next year will help offset that expensive valuation, and the stock will be relatively flat.

For Nvidia, the narratives that are dragging on its price now will be far in the rearview mirror by this time next year. Big changes may be ahead for the chipmaker, but what isn't changing is massive demand for AI computing hardware. Nvidia is still the category leader here and has built a massive lead over the competition. That will likely survive a CEO transition, and will allow Nvidia's growth to do the talking. If it grows at a nearly 70% pace and its valuation rises to a more respectable level, I don't see why Nvidia couldn't double a $10,000 investment into $20,000 by the end of next year.

That would make Nvidia a top stock to buy now, while Apple could underperform thanks to how expensive it is.

Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Apple and Nvidia. The Motley Fool has a disclosure policy.