The buzz around generative artificial intelligence (AI) and expectations of falling interest rates are driving several technology stocks higher. While there are concerns about stretched valuations, Wall Street analysts continue to see further upside in many tech names. Using TipRanks’ Stock Comparison Tool, we placed Apple (AAPL), Nvidia (NVDA), and Alibaba (BABA) against each other to find the tech stock that could offer the highest upside potential from current levels, according to analysts.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Apple (NASDAQ:AAPL)
Apple shares have risen about 29% so far this year. The iPhone maker impressed investors with better-than-expected results for the fourth quarter of Fiscal 2024. The company’s adjusted earnings per share (EPS) increased 12% to $1.64, with sales rising 6% to $94.9 billion. Notably, revenue from iPhone, which accounted for about 49% of the overall sales, grew 5.5% to $46.2 billion.
Moreover, revenue from Services, which is a higher-margin business compared to Apple’s products, grew 12% to about $25 billion. Apple expects its Services revenue growth in the December quarter to be nearly the same as its growth rate in the past year (12.9%). Further, the company expects its December overall sales to rise by “low to mid-single digit.”
While there are concerns about the impact of competition on iPhone sales in key markets like China, several analysts remain confident about the company due to its growing Services business and AI initiatives like Apple Intelligence.
Is AAPL a Buy, Sell, or Hold?
Baird analyst William Power raised the price target for Apple stock to $260 from $240 while reiterating a Buy rating. Power noted that AAPL currently trades at 32.8x of the calendar year 2025 EPS estimate, reflecting about a 50% premium to the S&P 500’s (SPX) multiple of 22x.
He added that his $260 target price is based on a 34x P/E multiple (calculated on 2025 EPS forecast), placing it towards the high end of the stock’s 10-35x historical range and a premium to other tech and consumer leaders. Power explained that the premium valuation reflects solid execution, growing contribution from Services, continued eco-system benefits, and impressive free cash flow.
With 20 Buys, nine Holds, and two Sells, Wall Street has a Moderate Buy consensus rating on Apple stock. The average AAPL stock price target of $243.20 implies 2% downside risk.
Nvidia (NASDAQ:NVDA)
Semiconductor giant Nvidia’s shares have rallied more than 171% year-to-date, driven by the robust demand for its advanced GPUs (graphics processing units) that are required for powering generative AI models and applications.
Last month, Nvidia reported market-beating results for the third quarter of Fiscal 2025. Revenue grew 94% year-over-year to $35.1 billion, while adjusted EPS jumped 103% to $0.81. Despite strong Q3 results, there have been some concerns about the slowdown in revenue growth. Additionally, investors are worried about the longevity of the AI-induced demand.
Nonetheless, Nvidia is optimistic about its future prospects, supported by robust demand for its Hopper and Blackwell platforms amid the generative AI boom.
What Is the Price Target for NVDA Stock?
Following the Q3 print, Wolfe Research analyst Chris Caso raised the price target on NVIDIA stock to $180 from $150 and reiterated a Buy rating on the stock. The analyst said that the new price target is based on a P/E (price-to-earnings) multiple of about 42x his 2025 (calendar year) EPS estimate of $4.26, which is slightly above the stock’s nearly 37x average multiple over the past five years.
Caso further contended that the P/E multiple of 42x is reasonable given his expectation for almost 50% revenue growth next year. The analyst said that NVDA had been his favorite stock for several years, and continues to be so, given that it is the chief beneficiary of the AI wave. Caso thinks there is a clear path to over $200 billion in data center revenue based on supply chain forecasts related to the Blackwell ramp, which could drive an EPS of $5 in Fiscal 2026.
Coming to the consensus rating, Nvidia scores a Strong Buy based on 37 buys and three Hold recommendations. At $176.14, the average NVDA stock price target implies 31.2% upside potential.
Alibaba (NYSE:BABA)
Chinese e-commerce behemoth Alibaba recently announced upbeat earnings for the September quarter. Net income jumped 58% to RMB 43.9 billion, driven by the rise in operating income and mark-to-market changes in equity investments. Meanwhile, revenue grew 5% to RMB 236.5 billion even as macro pressures continue to impact consumer spending.
In a statement on the September quarter results, Alibaba CEO Eddie Wu stated that the company is more confident about its core businesses and continues to invest in its long-term growth. BABA shares have advanced more than 15% so far this year, partially due to the optimism about the stimulus measures being assured by the Chinese government to boost the economy.
Despite macro uncertainty and the US-China tensions, several analysts are bullish on BABA due to its restructuring efforts, the company’s cloud business, and AI-related growth opportunities. It is worth noting that the growth in Alibaba’s Cloud business accelerated in the September quarter compared to the prior quarters, with revenue from public cloud products increasing by double digits and AI-related product revenue witnessing triple-digit growth.
Is BABA Stock a Good Buy Now?
Recently, Alibaba announced that it will integrate its domestic Chinese and international e-commerce platforms into a single business unit (called the E-commerce Business Group) amid intense competition. The company aims to create synergies in its supply chain with this move.
Reacting to this announcement, Citi analyst Alicia Yap reaffirmed a Buy rating on Alibaba stock and stated that she views the announcement positively. The analyst, who has a price target of $133 on BABA stock, noted that this step could fuel synergies across Alibaba’s Taobao Tmall Group and the International Digital Commerce Group, driving improvement in operations and financial performance.
Overall, Wall Street has a Strong Buy consensus rating on TipRanks, backed by 14 Buys versus one Hold rating. The average BABA stock price target of $127.05 implies about 45% upside potential.
Conclusion
Wall Street is highly bullish on Alibaba and Nvidia stocks but cautiously optimistic about Apple. Analysts see higher upside potential in Alibaba stock than in the stocks of the other two tech giants, thanks to improving fundamentals, AI-related prospects, and the Chinese government’s stimulus measures.
Interestingly, as per TipRanks’ Smart Score System, both Alibaba and Nvidia score a “Perfect 10,” implying that both these stocks are well-positioned to outperform the broader market over the long term.
