MacRumors
macrumors bot
Original poster
- Apr 12, 2001
- 63,990
- 31,604
- Wednesday at 1:29 PM
- #1
Fans of large numbers will be happy to know that Apple became a $3 trillion company again today based on market cap, which is the total value of all of the company's outstanding shares. However, chipmaker Nvidia stole the moment.
Nvidia not only crossed the $3 trillion mark today for the first time ever, but it overtook Apple to become the world's second most valuable company as of market close today, trailing only Microsoft. Nvidia's stock price has more than tripled over the past year amid strong demand for its artificial intelligence (AI) server chips.
Apple became the world's first $3 trillion company in January 2022, and it has recrossed that mark several times since then. However, this is the first time that Apple has dropped to be the world's third most valuable company since 2019.
Apple is expected to unveil its own AI strategy during its WWDC keynote next week, with iOS 18 rumored to feature a smarter version of Siri powered by a large language model (LLM) and many other new AI features. Apple has also reportedly partnered with OpenAI to integrate ChatGPT on the iPhone, but the exact implementation remains to be seen.
AAPL closed at $195.87 today, down from a 52-week high of $199.62.
Article Link: Apple Becomes $3 Trillion Company Again, But Nvidia Steals the Moment
- Article Link
- https://www.macrumors.com/2024/06/05/aapl-vs-nvidia-3-trillion-dollar-companies/
Last edited:
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Justin CymbalJustin Cymbal
macrumors 6502
- Mar 25, 2008
- 458
- 2,635
- Boston, Massachusetts
- Wednesday at 1:32 PM
- #2
It’s hard to believe, but it has finally happened!
I currently have 4 shares of Nvidia and I bought them a while ago so I’m definitely happy with my investment so far
Nvidia is a great company and it won’t be long before Nvidia surpasses Microsoft as the largest company in the US by market capitalization
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JustSomebody12, DOD250, Smittywerben and 4 othersAnalog Kid
macrumors G3
- Mar 4, 2003
- 9,061
- 11,858
- Wednesday at 1:33 PM
- #3
Nvidia is one of the few times I can think of where the hardware component maker outpaces the software end user applications in profitability. It's been a meteoric rise. Kudos to Huang for seeing the opportunity presented by AI and seizing it early.
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adrianpurple, phenste, michaelnugent and 1 other personcoffeemilktea
macrumors 6502a
- Nov 25, 2022
- 927
- 3,785
- Wednesday at 1:33 PM
- #4
Nvidia's growth is due largely to the fact that their GPUs are powering most AI things these days... if Apple were to unveil AI hardware of their own, I wonder if their stock price would shoot up like crazy? 🤔
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SFjohn, ekwipt, fullauto and 3 othersNo5tromo
macrumors 6502
- Feb 17, 2012
- 406
- 1,032
- Wednesday at 1:39 PM
- #5
If Apple keeps spending RND money on Apple Cars and fancy overpriced VR headsets instead of bringing iPhones to the 2020s soon others will also overtake
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KooL BeAnZ, pianophile, Kastellen and 8 othersD
davidg4781
macrumors 68030
- Oct 28, 2006
- 2,813
- 406
- Alice, TX
- Wednesday at 1:39 PM
- #6
Looks like I should buy some Nvidia stock.
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ekwipt and Apple Fan 2008- Wednesday at 1:39 PM
- #7
Nvidia is the future of AI and Robots!
C
cjsuk
macrumors regular
- Apr 30, 2024
- 122
- 455
- Wednesday at 1:41 PM
- #8
NVidia will tank shortly and the industry will be normalised. Watch what happens over the whole AI industry fall out. The big investors are starting to move out already because they rode the gains. Now regulation, non-delivery and over-promise is going to kick in. This is the standard maturity curve for a new technology, the Gartner Hype Cycle
We are right at supplier proliferation.
We've done the whole "AI" thing a couple of times before and it was a bust before. It just has money and tech companies behind it this time.
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eduardoregueiracampos, HDFan, Oblivious.Robot and 23 othersI
Isengardtom
macrumors 65816
- Feb 14, 2009
- 1,204
- 1,925
- Wednesday at 1:42 PM
- #9
davidg4781 said:
Looks like I should buy some Nvidia stock.
too late in my opinion
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CausticSoda, pianophile, TheAppleGuySL and 10 othersSidricTheViking
macrumors 6502
- Aug 20, 2014
- 395
- 440
- Wednesday at 1:44 PM
- #10
A fictional dream: Finally ‘they’ll’ stop calling Apple the most valuable company in the world as part of ‘their’ latest rant.
It didn’t happen after Microsoft took the top spot but Nvidia’s meteoric rise might just make it clear to ‘them’. Apple being off the top spot might also restore some of the old drive and energy. Too much to hope for?
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davide_eujayducharme
macrumors 601
- Jun 22, 2006
- 4,562
- 6,144
- The thick of it
- Wednesday at 1:44 PM
- #11
I'm surprised that MS still has such a strong showing, given their lackluster releases over the past few years. I guess capturing the corporate sector has paid off for them.
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Kastellen, TheAppleGuySL and TVreporterkaycrystal626
macrumors 6502
- Oct 11, 2018
- 384
- 585
- Wednesday at 1:45 PM
- #12
and I forgot to add, they built Earth 2.0 in a simulation. Literally the Matrix in the making!
Z
ZeroInspo
macrumors newbie
- Oct 7, 2022
- 7
- 39
- Wednesday at 1:45 PM
- #13
davidg4781 said:
Looks like I should buy some Nvidia stock.
Ah yes, buy high sell low, classic and solid investment strategy.
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eduardoregueiracampos, lesnouu, tongxinshe and 21 othersGasu E.
macrumors 603
- Mar 20, 2004
- 5,051
- 3,178
- Not far from Boston, MA.
- Wednesday at 1:45 PM
- #14
Analog Kid said:
Nvidia is one of the few times I can think of where the hardware component maker outpaces the software end user applications in profitability. It's been a meteoric rise. Kudos to Huang for seeing the opportunity presented by AI and seizing it early.
That was pretty much the case in the earliest history of computing. Hardly anyone thought software could be sold-- the conventional wisdom was that software was something that had to be bundled with the hardware. But software was relatively primitive at the time, and it wasn't until "commodity" hardware-- the PC-- came into being that software profitability took off. I think what we are seeing now is that AI software is so primitive that it's really hard to foresee the profit potential. If someone ever comes up with a killer, high value, mass market application, beyond "spreading misinformation", then that would eventually reverse things.
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IllegitimateValor, Timpetus, michaelnugent and 2 othersC
cjsuk
macrumors regular
- Apr 30, 2024
- 122
- 455
- Wednesday at 1:47 PM
- #15
Gasu E. said:
That was pretty much the case in the earliest history of computing. Hardly anyone thought software could be sold-- the conventional wisdom was that software was something that had to be bundled with the hardware. But software was relatively primitive at the time, and it wasn't until "commodity" hardware-- the PC-- came into being that software profitability took off. I think what we are seeing now is that AI software is so primitive that it's really hard to foresee the profit potential. If someone ever comes up with a killer, high value, mass market application, beyond "spreading misinformation", then that would eventually reverse things.
Software still isn't profitable.
This is why everyone wants you to sign up for a subscription. Recurring revenue is king.
Apart from the hardware companies!
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ILoveCalvinCool, Timpetus, smulji and 1 other personBigBrotherNowWatching
macrumors newbie
- Apr 27, 2020
- 20
- 18
- The Blue Planet
- Wednesday at 1:47 PM
- #16
what moment? who cares?
C
Cirillo Gherardo
Suspended
- May 9, 2024
- 178
- 221
- Wednesday at 1:47 PM
- #17
NVIDIA vastly over valued. Apple vastly under valued.
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CausticSoda, pianophile, Kastellen and 10 othersAnalog Kid
macrumors G3
- Mar 4, 2003
- 9,061
- 11,858
- Wednesday at 1:50 PM
- #18
Cirillo Gherardo said:
NVIDIA vastly over valued. Apple vastly under valued.
By what metric?
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1Peace, sideshowuniqueuser, freedomlinux and 3 othersantiprotest
macrumors 601
- Apr 19, 2010
- 4,109
- 14,670
- Wednesday at 1:51 PM
- #19
Justin Cymbal said:
It’s hard to believe, but it has finally happened!
I currently have 4 shares of Nvidia and I bought them a while ago so I’m definitely happy with my investment so far
Nvidia is a great company and it won’t be long before Nvidia surpasses Microsoft as the largest company in the US by market capitalization
How much did you profit?
mdriftmeyer
macrumors 68040
- Feb 2, 2004
- 3,821
- 2,002
- Pacific Northwest
- Wednesday at 1:51 PM
- #20
kaycrystal626 said:
Nvidia is the future of AI and Robots!
No it's not. It's got heavy competition with AMD who has a far deeper and broader IP offering line up. This run up with Nvidia will be short lived.
Several short positions have been already placed on the stock $350/share lower than current pricing.
As TSMC ramps up the MI300 series including the very soon 325 and later 350 early 2025 along side the 300A and 300X all of which offer better cost benefits and are fueling the largest supercomputers on the planet Nvidia will drop hard.
Its position is unsustainable.
Tesla will soon be lucky to be a $300 billion stock once touted to be $2 trillion and beyond.
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Oblivious.Robot, pianophile, TheAppleGuySL and 6 othersredbeard331
macrumors 68030
- Jul 21, 2009
- 2,668
- 4,846
- Wednesday at 1:52 PM
- #21
But they can’t replace the defective phone they sold me??
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BeautyspinD
DelayedGratificationGene
macrumors 6502a
- Jan 11, 2020
- 825
- 2,860
- Wednesday at 1:56 PM
- #22
Nvidia exactly mirrors Cisco during the internet frenzy. The huge players kept buying Cisco internet routers and switches until they had enough and waited for the ROI which didn’t materialize until decades later. Same exact scenario here with AI and Nvidia GPUs. Oh buy the way Cisco has yet to reach its internet peak price.
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davide_euD
DelayedGratificationGene
macrumors 6502a
- Jan 11, 2020
- 825
- 2,860
- Wednesday at 1:58 PM
- #23
cjsuk said:
NVidia will tank shortly and the industry will be normalised. Watch what happens over the whole AI industry fall out. The big investors are starting to move out already because they rode the gains. Now regulation, non-delivery and over-promise is going to kick in. This is the standard maturity curve for a new technology, the Gartner Hype Cycle
We are right at supplier proliferation.
We've done the whole "AI" thing a couple of times before and it was a bust before. It just has money and tech companies behind it this time.
Perfect post! Thank u
Reactions:
cjsukmagicman32
macrumors 6502
- Dec 25, 2007
- 412
- 740
- Wednesday at 1:58 PM
- #24
cjsuk said:
NVidia will tank shortly and the industry will be normalised. Watch what happens over the whole AI industry fall out. The big investors are starting to move out already because they rode the gains. Now regulation, non-delivery and over-promise is going to kick in. This is the standard maturity curve for a new technology, the Gartner Hype Cycle
We are right at supplier proliferation.
We've done the whole "AI" thing a couple of times before and it was a bust before. It just has money and tech companies behind it this time.
If by shorty you mean beyond the next 5 years, maybe. But they (and their stock price) aren’t going anywhere anytime soon. You tie them to AI because of your obscene anti-AI bias (sorry it hurt you in some way) but they were skyrocketing way before the AI train came in. They created other technologies to bolster the company and the ga ing space in general and I have no doubt they have at least 1 more trick up their sleeve over the next couple of years at least. All without even mentioning all the deals they’ve signed with major car companies.
They are well prepared for here and now and easily of the next decade, at a minimum, AI (the boogeyman?) or not.
AImhas never been t
I
Isengardtom
macrumors 65816
- Feb 14, 2009
- 1,204
- 1,925
- Wednesday at 1:58 PM
- #25
Cirillo Gherardo said:
NVIDIA vastly over valued. Apple vastly under valued.
Don’t think Apple is undervalued - There’s a lot of challenges ahead. Fiercer competition for the computers with more gradual performance jumps, saturated iPhone market. I also think growth in services is going to start levelling off
The tablets will do better this year is my guess, and probably services will continue to grow for a while longer and then we’ll see what this AI is all about and if it compells people to upgrade their devices, but even if they do, the next years feel more challenging to me.
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