Summary
Nvidia has emerged as a leader in the AI sector, with its stock surging 975% over the last three years, driven by the demand for AI-centric GPUs. In contrast, Apple, a member of the “Magnificent Seven” stocks, has lagged with just a 95% increase during the same period, underperforming against the S&P 500’s 73% rise. Despite this, analyst Dan Ives has raised his price target for Apple from $320 to $350, suggesting a potential upside of 26% based on the company’s strengthened focus on AI and promising iPhone sales.
Apple’s recent hiring of AI expert Amar Subramanya, who previously led AI projects at Google and Microsoft, signals a renewed strategy towards integrating AI into its products. The company’s installed base of 2.4 billion iOS devices, including 1.5 billion iPhones, is seen as a significant asset that could drive future revenue growth. Ives predicts that if Apple reaches the $350 target by 2026, its market cap could reach $5.17 trillion, surpassing Nvidia’s projected market cap of $5.1 trillion.
