Key Points
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Nvidia commands 86% of the AI data center GPU market and is expanding into CPUs to support AI.
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Apple is using its new Siri AI tool to stimulate an iPhone upgrade cycle, leveraging its existing user base of 1.5 billion iPhones.
Nvidia (NASDAQ: NVDA) leads the AI data center GPU market with an 86% share, expecting tech giants to spend an estimated $750 billion in 2023. The company reported sales of $81.6 billion in the last fiscal quarter, an 86% increase year-over-year, with net income rising 140% to $1.87 per share. As part of its growth strategy, Nvidia is launching next-generation CPUs tailored for AI needs.
Apple (NASDAQ: AAPL) is focusing on high-margin devices and its upcoming Siri AI tool, projected to drive significant iPhone upgrades. Analysts forecast that AI enhancements could contribute an additional $15 billion to Apple’s service revenue. In fiscal 2025, Apple’s iPhone revenue approached $210 billion, and the company maintains a strong free cash flow of around $101 billion amidst its peers’ larger capital expenditures.
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