The rise in popularity of AI technology has brought some of the biggest tech giants face-to-face in battle. NVIDIA and Apple are competing not only for investors’ preferences right now in a bid to stay relevant. Let’s take a look at the facts!
NVIDIA, a strong contender on the AI ground
Famous for its graphics processing units (GPUs) and AI innovations, NVIDIA has recently seen some notable price fluctuations. On March 27, NVDA stock CFDs were trading above $111.60 with TibiGlobe, reflecting a price drop of 5.80% within the past 24 hours. This downward movement may be seen as a signal of a broader downtrend, with the stock plummeting around 19.84% since early January.
Multiple factors are at play. On one hand, geopolitical tensions and potential export restrictions on AI chips, on the other, have raised concerns among investors. The Biden administration’s proposed “artificial-intelligence diffusion rules,” set to be introduced on May 15 2025, could impact NVIDIA’s ability to sell certain products internationally, particularly in China.
Additionally, the technical pattern points to a bearish trend. Despite the near-term outlook, NVIDIA’s financial performance is strong.
In the fourth quarter of the fiscal year 2025, the company reported record revenues of $39.3 billion, up 12% from the previous quarter and 78% year-over-year.
For the full fiscal year 2025, NVIDIA achieved revenue of $130.5 billion, a 114% increase from the prior year. GAAP earnings per diluted share for the year were $2.94, up 147% year-over-year.
CEO Jensen Huang highlighted the strong demand for NVIDIA’s Blackwell AI supercomputers, emphasizing the company’s leadership in AI advancements. Analysts remain cautiously optimistic about the stock.
Bank of America maintains a “Buy” rating with a price target of $200, suggesting significant upside potential. The firm anticipates that clarity on export regulations by mid-May could alleviate some investor concerns.
Any Apple bites?
Apple, a leader in consumer electronics, has also witnessed some price swings. On March 27, AAPL shares were trading at $223.69 with TibiGlobe, up 2.45% over the past week but 8.26% down over the past month.
The company faces challenges in the AI sector. Apple’s attempt to enhance Siri with advanced AI through “Apple Intelligence” has faced significant setbacks. Initially announced in June 2024 and expected to roll out with the iPhone 16, the new Siri has been delayed indefinitely due to functionality issues.
Apple’s stringent focus on privacy has limited Siri’s capabilities compared to competitors like Google Assistant and Amazon Alexa, which can leverage extensive user data. This privacy-centric approach may be hindering Apple’s progress in AI, potentially impacting future product appeal.
Financially, Apple reported a steady performance. In the fiscal year 2024, the company achieved revenues of $394.3 billion, a 2% increase from the previous year. GAAP earnings per diluted share were $6.05, reflecting a slight decline of 3% year-over-year. Apple’s strong brand and ecosystem continue to drive consumer loyalty, but innovation in AI remains a focal point for future growth.
So, which is better, Apple or NVIDIA?
When evaluating NVIDIA and Apple as investment options, you should consider multiple factors, including:
- Market position and innovation: NVIDIA’s dominance in GPU technology and AI positions it well for growth in data centers and AI applications. Apple’s strong brand and ecosystem are significant assets, but delays in AI advancements such as Siri could impact its competitiveness.
- Financial health: NVIDIA has demonstrated remarkable revenue and earnings growth in the fiscal year 2025, while Apple’s growth appears steadier with modest revenue increases.
- Analyst sentiment: NVIDIA holds a “Buy” rating from Bank of America with a price target suggesting a substantial upside. Apple’s analyst consensus remains positive, though specific price targets vary.
A few more words of trading wisdom
Both NVIDIA and Apple present compelling investment cases, each with unique strengths and challenges. NVIDIA’s recent stock price decline may offer a strategic entry point for investors optimistic about AI and GPU markets, especially considering its strong financial performance and growth prospects.
Conversely, Apple’s consistent performance, brand strength, and ongoing efforts in AI integration suggest a stable investment with moderate growth potential. That said, you should align your choices with your goals, risk appetite, and market outlook. Diversification has its benefits in terms of balancing out risks.
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The information provided does not constitute financial advice and should not be relied upon as such. You should seek independent advice before making any investment decision.
