Nvidia Leaps Ahead as Apple Lags in AI Frenzy
The world's most valuable companies, Apple and Nvidia, are taking opposite paths in the AI race. While Apple sits out the mega-spending spree on AI data centers, Nvidia is fueling it with its essential chips and developer tools.
Nvidia makes the chips that power AI data centers, which has led to record revenue for the company, up 20% from the previous quarter and 85% from the same period a year ago. In contrast, Apple's revenue is largely driven by iPhone sales, with growth of 22% in its most recent quarter compared to the same period last year.
Nvidia's success has made it the biggest beneficiary of the AI boom, but analysts are wondering whether the company can deliver explosive growth every quarter. There have also been growing concerns that AI companies are propping each other up through a web of funding deals, with Nvidia at the heart of those worries.