From Nasdaq:

The stock market, and individual stocks like Nvidia and Apple, remain unpredictable for 2024. Investments whose key success factors depend on luck, and where the odds are heavily stacked, should be avoided at all costs. Paying too high a price, and the resulting subpar results, lead nowhere for even the best companies.

Nvidia appears to be untouchable, with GPUs selling fast. But growth rates and AI needs are changing and with competitors such as AMD entering the market, Nvidia’s absolute dominance won’t last. Even though profit margins and growth rates have soared, Nvidia’s current valuation seems high.

Apple’s growth story is bleak, with stagnating revenue and anemic growth. The iPhone is still the company’s largest revenue source, but with refresh cycles stretching out, and declining growth, the iPhone is no longer a major growth engine for Apple. The services business generated $85 billion of revenue, but this was not enough to offset sales of other products.

Apple stock has reached a valuation above 30 times its earnings, making it seem overvalued considering the anemic growth seen in 2023. Moreover, the launch of Apple’s Vision Pro headset has a $3,499 price tag, which might be tough for customers to bear and won’t significantly boost growth.

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