From Nasdaq: 2024-06-04 09:10:30

Apple and Nvidia, both “Magnificent 7” constituents, have had different fortunes in 2023 and 2024. Nvidia outperformed last year and continues to do so, while Apple is struggling despite a 49% gain. Nvidia’s market cap almost surpassed Apple’s before a post-earnings rally cooled off. Apple is yet to reclaim its $3 trillion market cap and the title of the world’s largest company from Microsoft.

Apple saw a rebound but is barely positive YTD, while Nvidia remains strong in 2024. Apple faced revenue decline while battling slow iPhone sales last year, unlike Nvidia, which saw impressive revenue growth. Nvidia is expected to post massive revenues this year due to AI spending, with Apple seen as lagging in AI development.

Analysts believe Nvidia is a stronger buy with a “Strong Buy” consensus rating compared to Apple’s “Moderate Buy.” Nvidia’s mean target price is $1,152.04, close to its current value, while Apple’s target price is $6.1% higher. Apple might see a boost from AI developments and potential new products unveiled at WWDC.

Some analysts, like Gene Munster, believe Apple will outperform Nvidia due to Apple’s AI opportunity. Others, like JP Morgan’s Samik Chatterjee, see potential in AI for a major iPhone upgrade cycle. Both companies could see changes in their stock performance based on their respective AI strategies and revenue outlooks.



Read more at Nasdaq: Apple or Nvidia: Which Is a Better AI Stock to Buy Now?