Apple Faces Slowing Growth as Competitors Thrive
Apple Inc. (NASDAQ: AAPL) is experiencing stagnating growth, primarily due to underperformance in its artificial intelligence (AI) strategy and lack of innovative product launches. Its current market capitalization stands at $3.1 trillion, with earnings growth slowing to a projected high-single-digit rate. This situation poses a risk of valuation decline over the next few years, especially as competitors like Taiwan Semiconductor Manufacturing (NYSE: TSM) and Broadcom (NASDAQ: AVGO) gear up for significant growth.
Taiwan Semiconductor predicts a 45% compounded annual growth rate (CAGR) in AI-related revenue over the next five years and an overall growth rate of nearly 20% CAGR. Broadcom’s custom AI accelerators, known as XPUs, are emerging as compelling alternatives to conventional GPUs in data centers. Broadcom anticipates an addressable market for its products between $60 billion and $90 billion by 2027. Both companies may pose a real challenge to Apple’s market position by 2030 if they continue on their current trajectories.
