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NVIDIA vs. Apple: AI Race for $6 Trillion
28 Oct
Summary
- NVIDIA's data center revenue surged to $89B.
- Apple's Q2 earnings boosted by tariff refunds.
- NVIDIA projects 70% growth; Apple targets 9%-11%.
NVIDIA and Apple are charting distinct courses as they approach a $6 trillion market valuation. NVIDIA's fiscal second quarter saw impressive revenue of $96.22 billion, with its Data Center segment contributing a significant $89.02 billion. The company is focused on building AI infrastructure for a broad range of clients.
Apple, meanwhile, reported a record June quarter of $109.42 billion, primarily driven by its iPhone 17 family and a strong Mac performance. However, a portion of its $2.02 earnings per share was due to $0.11 from tariff refunds, a one-time benefit.
NVIDIA anticipates roughly 70% revenue growth in fiscal 2028, limited mainly by supply constraints. In contrast, Apple has guided for 9%-11% growth in the current quarter. Despite NVIDIA's higher projected growth, it trades at a slightly lower P/E ratio than Apple.
Tim Cook emphasized the strategic importance of on-device AI processing as a "competitive weapon." Ironically, Apple's Private Cloud Compute initiative utilizes NVIDIA's GPUs. Both companies face scrutiny over memory pricing, with NVIDIA expecting its gross margin to bottom out around 71% to 72%.
