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Apple Becomes $3 Trillion Company Again, But Nvidia Steals the Moment
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A lot of butthurt AAPL investors here facing the reality that Vision Pro is a flop; iPhone sales stagnating or tanking in some markets (without discounts, anyway); focus on mediocre services like mobile gaming and news aggregation; getting whipped around by the EU; and absolutely no AI strategy.
Maybe Apple should’ve bought some more Nvidia data center GPUs?
Maybe Apple should’ve bought some more Nvidia data center GPUs?
The assertion that market capitalization is the measure by which to gauge not only a company but our society is one of the more damnable aspects of the early 21st century.
Shareholder value is a suicide pact with the future.
Shareholder value is a suicide pact with the future.
You can try justifying this market cap, but it is clearly irrational. Certainly you could make money with this name, but you could also lose a lot of money. Be careful. There was a lot of FOMO in the nineties around tech, and I see it here again around AI. This is a cyclical sector, and I wouldn’t bet that this will change.
No one really knows what will happen with the stock price of any company. If you believe in the company buy is my personal opinion. I did that when everyone said Apple was a dumb buy back in 2004. I kept buying. Worked out well.
If you believe in a stock you buy and hold. IMO. But I have absolutely no clue what the future holds.
If you believe in a stock you buy and hold. IMO. But I have absolutely no clue what the future holds.
Lets go into my perspective first. I work for one of the largest investment companies out there and we have a lot of analysts working on what is acceptable risk profile for an investment. The risks we have on the table are existential ones for the industry through regulation, non-delivery and geopolitical problems (think TSMC). The killer though is the fact that there is so far not an ROI on this other than their market cap increasing. And that's a bubble.
As for me, I do not have an anti-AI bias. From a technical perspective I know what it is capable of and what people are saying it is capable of and what the disparity between the two is. The simple point is you can't rely on any of our current developments for when you need a deterministic and correct result or for when you need something with an audited reproducible output. This turns out to be the majority of problem domains that people need assistance with. That rapidly limits viable use cases and that is NOT what is being communicated via the AI marketing facades who are making speculative claims and hoping they will be able to meet it. So far this is not looking good.
What I'm staying is capability is overstated. When we get over the hype curve, realistic applications will be left in place. That's where my money is and that is 2030.
As for NVidia's other business, GPUs are a pretty small niche compared to APUs on the market for example. Many many more ARM CPUs ship than NVidia's entire sales. If the AI market reaches saturation or energy limits, which it is reaching, then their sales will dry up overnight.
How does Nvidia's revenue correlate with this increase in valuation? Stock market valuation is one thing, but if that doesn't translate into increased sales and revenue, does it really matter?
It has, because I agree on other levels they aren’t doing so amazing.
Corporate / enterprise is something where apple has dropped the ball big time
It doesn't. It's hype.
Everyone is buying NVidia, so I shall buy NVidia! Oh look he's buying NVidia, I must too. And so on.
At some point, the early investors with large capital pull their cash out because they made the highest gains (hint: I work for one of those bastards) and then there's a sudden confidence bust and the stock tanks.
Also don't forget most smaller investors have no idea what they are investing in or any financial modelling or analysts working for them. They are literally trading on hype.
you’re looking to the wrong stock—buy TSMC, they make both Apple’s and Nvidia’s chips. noticeably absent from headlines today is the fact that they closed at their highest share price ever today.
(I am not a financial advisor. this is not financial advice.)
I think AI bots are manipulating NVIDIA's stock price. The AI bots want NVIDIA to speed-up their takeover and subsequent destruction of humanity. 👾
Apple has been on their high horse far too long. Their margins are unsustainable. This was bound to happen and I’m all for it. Now I’m hoping this translates to continued market loss which will force more competitive pricing. $1,000 for a 1TB drive upgrade is flat out gouging.
I agree, they can’t sustain those upgrade prices indefinitely. Especially combined with the silly base storage and memory configs
On the iPads they changed the baseline finally making them reasonable.
I hope you are not buying now as you are most likely going to get hurt.
Nvidia had great run but its really toppy here.
Nvidia had great run but its really toppy here.
I think they are waiting for inflation to catch up with their prices 🤣
