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Apple Nears Nvidia's Market Cap Crown
23 Oct
Summary
- Apple's market value is closing in on Nvidia's.
- Widespread selling in AI stocks impacted Nvidia.
- Apple's upcoming earnings report could be decisive.
As of Thursday, Apple's market value stood at $5.082 trillion, only $42 billion behind Nvidia's $5.124 trillion, marking a record closing price for Apple at $348.22. This development follows a broader trend where Apple has gained ground, rising 1.82% over the past week and 28.44% year-to-date, while Nvidia has experienced a decline.
The recent widespread selling within the AI sector, described as the "most widespread selling of the AI trade" this year, significantly impacted chip stocks, including Nvidia. This downturn in the AI market has, in turn, allowed Apple to close the valuation gap. Jensen Huang, Nvidia's CEO, noted strong demand but scarcity of capital among neocloud companies, suggesting potential order limitations.
Apple's strategic decision to avoid the heavy AI spending race, which previously drew criticism, appears to be a factor in its current market position. The company's upcoming fiscal fourth-quarter earnings report on November 2 is highly anticipated and could influence whether Apple surpasses Nvidia. Nvidia, trading at a lower multiple despite faster growth, is expected to report its earnings around November 18, with the potential to regain its lead if the AI selling pressure eases.
