Longtime Apple analyst and Deepwater Asset Management Managing Partner Gene Munster recently raised eyebrows with a post on X saying that Apple is a better investment than Nvidia for the long term.
Advantage Apple: I believe over the next 12 months shares of AAPL will outperform NVDA based on a belief that Apple will be successful at leveraging AI to increase demand. My sense is the majority of investors are skeptical that Apple can pull it off.
Fahad Saleem for InsiderMonkey:
The Wall Street is running out of patience with Apple amid Apple’s AI strategy that’s been so far nonexistent and lagging behind competitors. But Apple bulls believe Apple will shine through in the AI race. The market is now awaiting the WWDC event where Apple is expected to reveal its AI plans. Dan Ives of Wedbush, one of the biggest Apple bulls, recently said that WWDC is the “most important event for Apple in over a decade as the pressure to bring a generative AI stack of technology for developers and consumers is front and center.”
Ives thinks Apple will be able to create an ecosystem around its AI offerings and Apple would see a $30 to $40 per share surge because of its AI products. Ives has a $275 price target on Apple shares.
Apple is trading at 27x its 2025 EPS estimate, which is still a high multiple given Apple’s 9.60% growth estimate for 2025 and 10.50% per-annum growth expected over the next five years. But all of this could change if Apple is able to pull AI-related catalysts out of its bag. The WWDC event and the new few weeks and months would be critical for Apple’s growth trajectory.
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MacDailyNews Take: From Gene’s X feed to Mr. Market’s eyes!
Still, it probably wouldn’t be a bad idea to have/build a stake in Nvidia alongside owning Apple.
TGIF! Esteemed and highly respected interns, please commence your sacred duty! Prost, everyone! 🍻🍻🍻
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It’s possible. It may be that a lot of Nvidia’s stock price rise is already priced in.
Who knows. Same could have been said 3 months ago. But also: The recent rise for NVIDIA has to do with Elon Musk and that itself makes the stock more volatile. So far I stay with Apple.
Over the past 6 months:
AAPL +0.60%
NVDA +154.47%
Since December, 2002:
AAPL +38,175.91%
… and rising.
Amen to that!.
I’ve noticed the Wall Street press has been promoting AAPL lately. Despite Apple stock losing profit and growth for 5 quarters straight. The media reported the previous quarter as a great. Now the media is reporting Apple’s dependency on open AI, as a brilliant AI strategy, as if Apple is back in the innovation leadership position and not reliant on another company to create what they should have done in-house. Then the increase of good china sales articles. Apples sales in China may be improving but let’s not ignore the fact that large discounts taint the final numbers. The market is pumping up Apple. Time will tell if Apple can return to meaningful and sustainable growth. I personally don’t see anything to get supper optimistic about. Is Apple now a growth stock?
This is paid media commentary pushed out by Apple. Damage control/narrative shaping
Replace the flat footed John G with Ilya Sutskever and we’ll see this stock fly
As much as I wish he were right about Apple outperforming Nvidia, it seems like a stretch to me. CEO Huang is a top salesperson and he just keeps selling to customers and investors that his A.I. strategy is the best in the world, his A.I. chips are the best in the world and that A.I. in general will solve every problem known to man. I don’t know why people keep believing him. I think he’s full of it although I understand that his job is to sell Nvidia hardware. His BS will never live up to claims and it’s going to cost companies plenty to realize that. His A.I. processors are expensive and it’s going to be very expensive for companies to maintain A.I. servers running constantly. I doubt they’ll ever see the sort of financial returns that they think they’ll see.
If Apple reaches $250 by the end of next year, I’ll be very satisfied. Apple stock doesn’t have to outperform Nvidia and I’ll take whatever gains Apple makes and not complain about it. I’m not a huge believer in A.I. and I wish Wall Street and the media wouldn’t praise any tech that puts human jobs at risk. I hope Apple’s use of A.I. simply helps users to make tasks easier when using Apple products. As long as Siri doesn’t stay the joke of the voice assistant world, I’ll be quite happy about that.
I sold 100K of AAPL and put in NVDA. First time that I have ever sold AAPL. I still have plenty of AAPL, but I want to see where this path gets me.