Mark Monday, October 21, 2024, as a milestone for Apple (AAPL) and Nvidia (NVDA). Both firms closed at fresh record highs.
Nvidia added 4.14% to its stock price and now commands a $3.525 trillion market capitalization. Unfortunately, the graphics chip designer did not report anything new. That could set up a profit-taking moment if stock traders lose buying momentum.
Apple added 1.48% yesterday to close at $236.48. Its market cap is $3.595 trillion, which is only slightly ahead of that of Nvidia. The media reported that some of Apple’s employees believed it was two years behind in AI development. The report is questionable since the news outlet did not who at Apple scrutinized AI’s positioning.
Despite the report’s skepticism, when Apple announced the iPhone 16, it did not have its AI, Apple Intelligence, ready. Device buyers would need to wait at least a few months for the AI launch.
Apple has a history of taking its time to refine a new technology. It has the advantage of observing what other firms do first. Instead of adopting a first-mover advantage, Apple will likely launch an AI that works well for its Watch, Maps, Music, streaming service, and the rest of its ecosystem.
Time will tell if Berkshire Hathaway (BRK-B) sold AAPL stock too early. If it falls below the same price, Berkshire was right.