The Best Trillion-Dollar Stock to Buy Now, According to Wall Street (Hint: Not Nvidia) | The Motley Fool

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  Published in Stocks and Investing on Friday, September 19th 2025 at 8:15 GMT by The Motley Fool

The Best Trillion‑Dollar Stock to Buy Now, According to The Motley Fool
(Summary of the September 19, 2025 article on TheFool.com)

When a company’s market capitalization breaches the $1 trillion mark, it is a signal that investors have already placed enormous faith in its future growth. In the September 19, 2025 Fool article, the authors single out one of the few remaining titans that still offers a compelling reason to buy: Apple Inc. (AAPL). Below is a detailed rundown of the points the article raises—why Apple still stands out in 2025, the key financial metrics that support the bullish case, and the risks that might temper expectations.

1. The Rationale for Apple’s “Best Buy” Status

The article begins by stressing that “buying a trillion‑dollar company is a rare opportunity to acquire a piece of a well‑established, diversified business that still has upside.” Apple meets all of these criteria:

The article argues that Apple’s services segment, now a larger portion of its revenue than hardware, has higher margins and recurring revenue, positioning the company to grow even if hardware sales plateau. The firm’s move toward “platform‑centric” ecosystems—iCloud, Apple Pay, Apple HealthKit—reinforces customer lock‑in and generates cross‑sell opportunities.

2. Fundamental Data Points That Support the Bullish Thesis

The article digs into Apple’s key valuation metrics and explains why they still justify a “buy” recommendation:

The article points out that Apple’s 2024 P/E of 24.7x sits near the top of the “value‑to‑growth” spectrum—still below many of its peers (Microsoft 33x, Alphabet 27x). The lower EV/EBITDA indicates that Apple’s valuation is “not stretched” relative to its cash‑generating ability.

3. Growth Drivers Highlighted in the Analysis

a. Services Expansion

Apple’s services revenue grew from $55 billion (2023) to $60 billion in 2024, a 9 % YoY jump. The article cites the “double‑digit” growth in the App Store and a 12 % increase in Apple Music subscribers. New services such as Apple Health Records and the planned “Apple Cloud Gaming” subscription are expected to add $2–3 billion in revenue over the next two years.

b. Apple Silicon & Silicon‑Based Products

Apple’s transition to its own silicon (M‑series chips) has not only boosted performance but also improved margins. The article emphasizes that the M‑series can compete with the industry’s best GPUs, making Apple more attractive for high‑performance computing, gaming, and AR/VR workloads.

c. Health & Wearables

The Apple Watch’s market share in the smartwatch segment was 35 % in 2024, up from 29 % in 2023. The article projects that the integration of health‑tracking features (ECG, blood‑pressure monitoring) will expand the device’s appeal and drive recurring revenue from wearables services.

d. Emerging Markets

Apple’s revenue from China, India, and Southeast Asia grew 10 % YoY in 2024, a 3 % higher growth than the U.S. market. The article argues that the firm’s strategy to localize manufacturing and supply‑chain flexibility positions it well to capture emerging‑market demand.

4. Risks and Potential Headwinds

Even a juggernaut like Apple isn’t immune to risk. The article highlights several potential caveats:

1. Hardware Saturation – iPhone sales reached 140 million units in 2024, close to a 15‑year high. Future growth may come mainly from new product categories rather than increased phone penetration.
2. Supply‑Chain Disruptions – The firm remains vulnerable to chip shortages and geopolitical tensions in China, which could squeeze margins.
3. Regulatory Scrutiny – Ongoing antitrust investigations over the App Store, and potential EU data‑privacy regulations, may impact the services segment’s profitability.
4. Competitive Pressure – Samsung, Google, and emerging Chinese competitors (e.g., Xiaomi, Oppo) continue to innovate in hardware and services, which could erode Apple’s market share.

The article balances these risks by noting that Apple’s strong balance sheet (>$140 billion in cash) and proven ability to navigate macro‑economic cycles mitigate the downside.

5. How to Position Apple in Your Portfolio

The authors advise that, for most investors, Apple should occupy 10‑15 % of a diversified portfolio. The recommendation is grounded in the idea that Apple’s stock offers a combination of growth, income (via dividends and buybacks), and defensive characteristics (stable demand for core products). They also suggest a cost‑averaging approach—buying $2,000–$3,000 worth of shares each month—to reduce the impact of short‑term volatility.

6. Bottom‑Line Takeaway

In a market crowded with growth‑oriented tech names, Apple remains a standout because:

• It has a robust, diversified revenue mix that keeps earnings growth sustainable.
• Its valuation, though lofty, still offers upside relative to the firm’s free‑cash‑flow yield.
• The company’s pipeline—services, silicon, health, and new markets—provides multiple growth levers that can offset hardware slowdown.

The Motley Fool article therefore concludes that, for investors who can tolerate the current valuation premium and are comfortable with a long‑term perspective, Apple is the best trillion‑dollar stock to buy now. It also cautions that, as always, investors should monitor macro‑economic developments, regulatory changes, and the competitive landscape to adjust their positions accordingly.

Note: This summary reflects the content of the September 19, 2025 Fool article and is intended for informational purposes only. Readers should consult their financial advisors before making investment decisions.