In the latest quarterly earnings showdown, Nvidia (NASDAQ:NVDA) outperformed Apple (NASDAQ:AAPL) by a wide margin, yet the market values them almost equally. Nvidia's net income for its fiscal second quarter of 2027, ending July 26, 2026, was $59.7 billion, nearly double Apple's $29.8 billion in its fiscal third quarter of 2026, which ended June 27, 2026. Despite this significant earnings gap, Nvidia's market cap of approximately $5.8 trillion is only about 20% higher than Apple's $4.9 trillion.
The earnings disparity highlights how quickly Nvidia's profits have surged. A year earlier, Nvidia's net income for the same quarter was $26.4 billion, just 13% higher than Apple's $23.4 billion. Nvidia's latest quarterly net income represents a 126% year-over-year increase, while Apple's climbed 27%. Over the past 12 months, Nvidia's net income was around $192.9 billion, about 50% higher than Apple's $128.9 billion.
Apple's profits, however, are known for their steadiness, even in weak years. The company's net income dropped only around 3% for fiscal 2023, while Nvidia's net income fell 55% to $4.4 billion for its fiscal 2023. Apple's diversified revenue streams, particularly from services like the App Store and iCloud, contribute to its stability. Nvidia's profits, on the other hand, rely heavily on data center sales, primarily AI chips and networking gear, which accounted for $89.0 billion of its $96.2 billion in fiscal second-quarter revenue.
The market's valuation of Nvidia relative to Apple suggests a cautious outlook. Nvidia's stock trades at about 30 times earnings, compared to Apple's 38 times earnings. Analysts believe Nvidia's stock price already accounts for significant risk, including potential fluctuations in AI spending. Despite this, some investors see Nvidia as offering more profit potential per dollar invested, even if its earnings are less predictable than Apple's.