When Nvidia (NVDA) briefly surpassed Apple (AAPL) by market capitalization (share price multiplied by shares outstanding), the win proved short-lived. On Tuesday, markets reacted positively to Apple’s artificial intelligence initiatives announced at WWDC 2024.
The firm announced Apple Intelligence. This is a platform that generative AI will power. The company will integrate this across its hardware and software products. Given the firm’s massive user base, stock markets expect immediate success from this announcement. They are betting that customers, strapped for cash, now have a reason to upgrade to the latest iPhone, iPad, and Mac computer.
The platform is currently a concept in the mind of the technologist. Yet the stock gained 7% from the announcement. Furthermore, the OpenAI integration with Siri is similar to Microsoft (MSFT) powering CoPilot with the same technology.
Despite shares of Microsoft and Apple trading at all-time highs, both stocks are good long-term holdings. No other technology firms may catch up to the growth of AI on either platform.
Nvidia is in an unbreakable uptrend pattern. Markets have no reason to take profits from the supplier of AI chips. More customers will buy AI-related hardware to get a lead over its competitors. For now, the sector is in an “arms race” of technology investing that will lift the major players.