Gene Munster Says Apple to Become a Trillion Dollar Company

Leading Wall Street analyst Gene Munster with Piper Jaffray says Apple will achieve a market cap of $1 trillion dollars, possibly within the next 24 months.

It would be the first time that any company in the history of the world has achieved that feat.

“First,” Munster writes to investors Tuesday, “we believe dollars invested in US technology companies will increase ~5% y/y on average for the next three years (CY12-CY14). By comparison, dollars invested in US tech companies were up 9% y/y in 2011. Therefore, the tech sector will add ~$390 billion in market cap through 2014. We assume Apple could capture half of this market cap (from 85% in the 4 years prior).”

“Second,” he adds, “the companies we consider to be the 10 most relevant competitors to Apple (Samsung, HTC, RIMM, NOK, SNE, DELL, HP, MSFT, INTC, GOOG) represent nearly $1 trillion in market cap today. We believe 20% of that value, or ~$200 billion could shift to Apple through 2014. Thus there is potential for Apple to repeat history and add another $400 billion to its market cap. At a $1,000 share price (roughly $1 trillion in market cap) Apple would represent 26% of the total US tech market cap from 17% today.”

Also on Tuesday, Munster raised his 12-month price target for AAPL to $910.

Do you agree with the growth projections many analysts are making with regard to Apple or has a new tech bubble of epic proportions begun?