News on Medial

Nvidia may leapfrog Apple in value if the iPhone maker doesn't wow investors with AI soon, analyst says

Business Insider · 1y ago

Medial

Apple's dominance in terms of market valuation over Nvidia, a leading chip giant in the AI space, is at risk if Apple fails to deliver better-than-expected generative AI services this year, according to Apple analyst Ming-Chi Kuo. Nvidia has seen a 260% increase in its stock price over the past year, leading to a market cap of $2.06 trillion. In contrast, Apple's stock has only risen by 13%, resulting in a valuation of $2.78 trillion. Apple's push for AI is crucial due to iPhone sales challenges, particularly in China, where sales dropped by 24% in the first few weeks of 2024. Apple's precise plans for its generative AI efforts are still unclear, but speculation suggests integration into software updates and the development of an AI coding assistant.