24/7 Wall St. Insights
- Nvidia Corp. (NASDAQ: NVDA) is poised to overtake Apple Inc. (NASDAQ: AAPL) in market cap.
- That is because Nvidia’s stock price is surging but Apple’s is not.
- Also: Discover the Next Nvidia.
Nvidia Corp.’s (NASDAQ: NVDA) market cap reached $3.39 trillion, just shy of Apple Inc.’s (NASDAQ: AAPL) $3.52 trillion value. Nvidia’s stock price is surging. Apple’s is not. So far this year, Nvidia’s shares are up 178%. Apple’s are up 20%, about the same as the S&P 500. A large part of Nvidia’s increase has been in the past five weeks.
“Analysts expect spending to build out AI data centers will help Nvidia’s annual revenue more than double to nearly $126 billion, according to LSEG data,” Reuters reported. Much of this is because of demand for the company’s flagship product, the Blackwell. Investors worried about delays in production until recently when CEO Jensen Huang said the chip was in “full production” and that demand for Blackwell “is insane.” In Nvidia’s most recent quarter, revenue rose 120% year over year to $30 billion. Earnings rose 169% on the same basis to $0.67 a share.
Apple, on the other hand, has struggled. There are reports that its iPhone 16 launch has not gone well. Jefferies analyst Edison Lee recently downgraded Apple from Buy to Hold. He wrote that high expectations for the iPhone were premature.
One major concern about the iPhone 16 launch is that it has yet to have all of the artificial intelligence features Apple has created for its premier products. Those will be released as part of iOS 18 later this month. Some buyers may be waiting until iOS 18 has launched to buy the iPhone 16.
Apple also needs to work on its newest product, the Vision Pro, which is lagging in sales. The Vision Pro costs almost $3,000. Widely followed Counterpoint Research reported that, in the second quarter, sales fell 80% from the prior quarter. Apple has yet to launch a new product in close to a decade. It still relies on the iPhone, iPad, Mac, and its services businesses.
Nvidia’s business is exploding. Apple’s is not.
Nvidia Price Prediction and Forecast
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