Apple Becomes $3 Trillion Company Again, But Nvidia Steals the Moment

[MacRumors]

Fans of large numbers will be happy to know that Apple became a $3 trillion company again today based on market cap, which is the total value of all of the company's outstanding shares. However, chipmaker Nvidia stole the moment.

Nvidia not only crossed the $3 trillion mark today for the first time ever, but it overtook Apple to become the world's second most valuable company as of market close today, trailing only Microsoft. Nvidia's stock price has more than tripled over the past year amid strong demand for its artificial intelligence (AI) server chips.

Apple became the world's first $3 trillion company in January 2022, and it has recrossed that mark several times since then. However, this is the first time that Apple has dropped to be the world's third most valuable company since 2019.

Apple is expected to unveil its own AI strategy during its WWDC keynote next week, with iOS 18 rumored to feature a smarter version of Siri powered by a large language model (LLM) and many other new AI features. Apple has also reportedly partnered with OpenAI to integrate ChatGPT on the iPhone, but the exact implementation remains to be seen.

AAPL closed at $195.87 today, down from a 52-week high of $199.62.

Article Link: Apple Becomes $3 Trillion Company Again, But Nvidia Steals the Moment

 

[Justin Cymbal]

It’s hard to believe, but it has finally happened!

I currently have 4 shares of Nvidia and I bought them a while ago so I’m definitely happy with my investment so far

Nvidia is a great company and it won’t be long before Nvidia surpasses Microsoft as the largest company in the US by market capitalization

 

[Analog Kid]

Nvidia is one of the few times I can think of where the hardware component maker outpaces the software end user applications in profitability. It's been a meteoric rise. Kudos to Huang for seeing the opportunity presented by AI and seizing it early.

 

[coffeemilktea]

Nvidia's growth is due largely to the fact that their GPUs are powering most AI things these days... if Apple were to unveil AI hardware of their own, I wonder if their stock price would shoot up like crazy? 🤔

 

[No5tromo]

If Apple keeps spending RND money on Apple Cars and fancy overpriced VR headsets instead of bringing iPhones to the 2020s soon others will also overtake

 

[davidg4781]

Looks like I should buy some Nvidia stock.

 

[kaycrystal626]

Nvidia is the future of AI and Robots!

 

[cjsuk]

NVidia will tank shortly and the industry will be normalised. Watch what happens over the whole AI industry fall out. The big investors are starting to move out already because they rode the gains. Now regulation, non-delivery and over-promise is going to kick in. This is the standard maturity curve for a new technology, the Gartner Hype Cycle

We are right at supplier proliferation.

We've done the whole "AI" thing a couple of times before and it was a bust before. It just has money and tech companies behind it this time.

 

[Isengardtom]

Looks like I should buy some Nvidia stock.

too late in my opinion

 

[SidricTheViking]

A fictional dream: Finally ‘they’ll’ stop calling Apple the most valuable company in the world as part of ‘their’ latest rant.

It didn’t happen after Microsoft took the top spot but Nvidia’s meteoric rise might just make it clear to ‘them’. Apple being off the top spot might also restore some of the old drive and energy. Too much to hope for?

 

[jayducharme]

I'm surprised that MS still has such a strong showing, given their lackluster releases over the past few years. I guess capturing the corporate sector has paid off for them.

 

[kaycrystal626]

and I forgot to add, they built Earth 2.0 in a simulation. Literally the Matrix in the making!

 

[ZeroInspo]

Looks like I should buy some Nvidia stock.

Ah yes, buy high sell low, classic and solid investment strategy.

 

[Gasu E.]

Nvidia is one of the few times I can think of where the hardware component maker outpaces the software end user applications in profitability. It's been a meteoric rise. Kudos to Huang for seeing the opportunity presented by AI and seizing it early.

That was pretty much the case in the earliest history of computing. Hardly anyone thought software could be sold-- the conventional wisdom was that software was something that had to be bundled with the hardware. But software was relatively primitive at the time, and it wasn't until "commodity" hardware-- the PC-- came into being that software profitability took off. I think what we are seeing now is that AI software is so primitive that it's really hard to foresee the profit potential. If someone ever comes up with a killer, high value, mass market application, beyond "spreading misinformation", then that would eventually reverse things.

 

[cjsuk]

That was pretty much the case in the earliest history of computing. Hardly anyone thought software could be sold-- the conventional wisdom was that software was something that had to be bundled with the hardware. But software was relatively primitive at the time, and it wasn't until "commodity" hardware-- the PC-- came into being that software profitability took off. I think what we are seeing now is that AI software is so primitive that it's really hard to foresee the profit potential. If someone ever comes up with a killer, high value, mass market application, beyond "spreading misinformation", then that would eventually reverse things.

Software still isn't profitable.

This is why everyone wants you to sign up for a subscription. Recurring revenue is king.

Apart from the hardware companies!

 

[BigBrotherNowWatching]

what moment? who cares?

 

[Cirillo Gherardo]

NVIDIA vastly over valued. Apple vastly under valued.

 

[Analog Kid]

NVIDIA vastly over valued. Apple vastly under valued.

By what metric?

 

[antiprotest]

It’s hard to believe, but it has finally happened!

I currently have 4 shares of Nvidia and I bought them a while ago so I’m definitely happy with my investment so far

Nvidia is a great company and it won’t be long before Nvidia surpasses Microsoft as the largest company in the US by market capitalization

How much did you profit?

 

[mdriftmeyer]

Nvidia is the future of AI and Robots!

No it's not. It's got heavy competition with AMD who has a far deeper and broader IP offering line up. This run up with Nvidia will be short lived.

Several short positions have been already placed on the stock $350/share lower than current pricing.

As TSMC ramps up the MI300 series including the very soon 325 and later 350 early 2025 along side the 300A and 300X all of which offer better cost benefits and are fueling the largest supercomputers on the planet Nvidia will drop hard.

Its position is unsustainable.

Tesla will soon be lucky to be a $300 billion stock once touted to be $2 trillion and beyond.

 

[redbeard331]

But they can’t replace the defective phone they sold me??

 

[DelayedGratificationGene]

Nvidia exactly mirrors Cisco during the internet frenzy. The huge players kept buying Cisco internet routers and switches until they had enough and waited for the ROI which didn’t materialize until decades later. Same exact scenario here with AI and Nvidia GPUs. Oh buy the way Cisco has yet to reach its internet peak price.

 

[DelayedGratificationGene]

NVidia will tank shortly and the industry will be normalised. Watch what happens over the whole AI industry fall out. The big investors are starting to move out already because they rode the gains. Now regulation, non-delivery and over-promise is going to kick in. This is the standard maturity curve for a new technology, the Gartner Hype Cycle

We are right at supplier proliferation.

We've done the whole "AI" thing a couple of times before and it was a bust before. It just has money and tech companies behind it this time.

Perfect post! Thank u

 

[magicman32]

NVidia will tank shortly and the industry will be normalised. Watch what happens over the whole AI industry fall out. The big investors are starting to move out already because they rode the gains. Now regulation, non-delivery and over-promise is going to kick in. This is the standard maturity curve for a new technology, the Gartner Hype Cycle

We are right at supplier proliferation.

We've done the whole "AI" thing a couple of times before and it was a bust before. It just has money and tech companies behind it this time.

If by shorty you mean beyond the next 5 years, maybe. But they (and their stock price) aren’t going anywhere anytime soon. You tie them to AI because of your obscene anti-AI bias (sorry it hurt you in some way) but they were skyrocketing way before the AI train came in. They created other technologies to bolster the company and the ga ing space in general and I have no doubt they have at least 1 more trick up their sleeve over the next couple of years at least. All without even mentioning all the deals they’ve signed with major car companies.

They are well prepared for here and now and easily of the next decade, at a minimum, AI (the boogeyman?) or not.

AImhas never been t

 

[Isengardtom]

NVIDIA vastly over valued. Apple vastly under valued.

Don’t think Apple is undervalued - There’s a lot of challenges ahead. Fiercer competition for the computers with more gradual performance jumps, saturated iPhone market. I also think growth in services is going to start levelling off

The tablets will do better this year is my guess, and probably services will continue to grow for a while longer and then we’ll see what this AI is all about and if it compells people to upgrade their devices, but even if they do, the next years feel more challenging to me.