Analysts expect spending to build out AI data centers will help Nvidia's annual revenue more than double to nearly $126 billion, according to LSEG data. Much of this is because of demand for the company's flagship product, the Blackwell. CEO Jensen Huang mentioned that the chip was in "full production" and that demand for Blackwell "is insane." In Nvidia's most recent quarter, revenue rose 120% year over year to $30 billion. Earnings rose 169% to $0.67 a share.
Apple, on the other hand, has struggled. There are reports that its iPhone 16 launch has not gone well, leading to a downgrade from Jefferies analyst Edison Lee, who said that the high expectations for the iPhone were premature. Major concerns stem from the fact that the iPhone 16 has yet to showcase all artificial intelligence features that Apple has developed for its premium products, which are expected to come with the iOS 18 launch.
Nvidia's market cap reached $3.39 trillion, almost equalling Apple’s $3.52 trillion value. Nvidia's shares have surged 178% this year, contrasting starkly with Apple's sluggish 20% rise, mirroring trends seen in the S&P 500. The crux of Nvidia's performance centers around its leading product's demand, underscored by a robust revenue increase compared to Apple's stagnation and struggles with new product launches.
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