Apple vs Nvidia: The Race to $5 Trillion
While both Apple and Nvidia have massive valuations, their growth trajectories differ significantly. Nvidia has been consistently growing at an appreciable rate, with its fourth-quarter revenue increasing 78% year over year, whereas Apple's earnings per share and revenue have hardly risen since the start of 2022. Despite this, investors are willing to pay a premium for Apple stock, valuing it at 38 times trailing earnings.
- The disparity in growth rates between Apple and Nvidia may be due to their respective business models, with Nvidia's rapidly expanding AI sector providing a fertile ground for growth, while Apple's consumer electronics market has become increasingly saturated.
- Can Nvidia sustain its rapid growth momentum over the long term, or will it eventually face challenges from emerging technologies and increasing competition?