Nvidia's stock may briefly surpass Apple's value, but Apple is predicted to lead long term.

From Nasdaq:

After a wild day in the stock market on March 8, Nvidia’s shares hit an all-time high of $974 before falling over 10% to end at $875.28, edging closer to surpassing Apple in market cap. Earnings are driving Nvidia’s growth, with projected EPS to double by fiscal 2025, making it a potential short-term outperformer. However, Apple is seen as a better long-term buy due to market sentiment and potential for growth stemming from improved iPhone demand and services monetization. While Nvidia is high-risk/high-reward, Apple offers a lower-risk, medium-reward investment. Investors should consider both companies’ future potential while weighing their risk tolerance.

Nvidia’s stock could briefly surpass Apple’s value, but in the long term, Apple is predicted to take the lead due to its brand reputation, market position, and clearer path toward future growth. Apple’s ability to monetize existing products and services, coupled with strong brand loyalty, provides a more stable investment outlook. Though Nvidia continues to show high growth, it faces risks from cyclicality in the semiconductor industry and potential overvaluation. Apple’s financial strength and growth potential make it a safer investment choice in the long run, backed by solid market positioning and potential for product improvements.

Investors eyeing Nvidia should be cautious of high earnings forecasts required to sustain the stock’s growth trajectory. As a high-risk/high-reward play, Nvidia’s future performance hinges on continued demand for its products and sustained high margins. In comparison, Apple offers a better risk/reward profile as a low-risk/medium-potential-reward investment with room for growth in services monetization and product improvements. Over the next three to five years, Apple is expected to surpass Nvidia in value while offering a safer, less volatile investment opportunity. Investors are advised to consider both companies’ potential for future growth and market positioning before making investment decisions.



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