NVDA - Apple Stock Is More Expensive Than Nvidia
2024-07-20 03:20:32 ET
Summary
- Apple’s massive installed base and wide-reaching ecosystem represents a key gateway to consumer AI.
- So far in this AI race, Nvidia has been cementing its position as the core operating system for running Generative-AI software applications in this new era.
- The introduction of Apple Intelligence challenged this dominance by running Gen AI on servers not powered by Nvidia, with Apple striving to be the core operating system for consumer AI.
- Apple’s bold and independent AI strategy has encouraged investors to assign AAPL a richer valuation.
- While Apple’s AI growth opportunities are encouraging, the stock is simply too expensive, and arguably should not be trading at a higher valuation multiple than Nvidia.
Last month, Apple ( AAPL )(AAPL:CA) officially entered the AI race with the introduction of Apple Intelligence. Since then, several new pieces of information have come out relating to Apple’s AI strategy, although various unknowns still remain. Nonetheless, the onset of Apple Intelligence has sparked an astounding rally in the share price, with investors assigning a stock valuation as if the company is set to dominate the era of AI, a crown that currently belongs to Nvidia.
In the previous article on Apple, we discussed Apple’s growth opportunities in the enterprise space amid the AI revolution. We discussed how Apple already has a competitive advantage in designing its own chips for years, on which it had already been running Machine Learning/ Artificial Intelligence workloads for years, paving the way towards building silicon to support generative AI workloads now. We also discussed opportunities on the enterprise software side for Apple....
Apple Stock Is More Expensive Than Nvidia