Over the next 12 months, Apple stock will outperform Nvidia – Gene Munster
Longtime Apple analyst and Deepwater Asset Management Managing Partner Gene Munster recently raised eyebrows with a post on X saying that Apple is a better investment than Nvidia for the long term.
Advantage Apple: I believe over the next 12 months shares of AAPL will outperform NVDA based on a belief that Apple will be successful at leveraging AI to increase demand. My sense is the majority of investors are skeptical that Apple can pull it off.
Fahad Saleem for InsiderMonkey:
The Wall Street is running out of patience with Apple amid Apple’s AI strategy that’s been so far nonexistent and lagging behind competitors. But Apple bulls believe Apple will shine through in the AI race. The market is now awaiting the WWDC event where Apple is expected to reveal its AI plans. Dan Ives of Wedbush, one of the biggest Apple bulls, recently said that WWDC is the “most important event for Apple in over a decade as the pressure to bring a generative AI stack of technology for developers and consumers is front and center.”
Ives thinks Apple will be able to create an ecosystem around its AI offerings and Apple would see a $30 to $40 per share surge because of its AI products. Ives has a $275 price target on Apple shares.
Apple is trading at 27x its 2025 EPS estimate, which is still a high multiple given Apple’s 9.60% growth estimate for 2025 and 10.50% per-annum growth expected over the next five years. But all of this could change if Apple is able to pull AI-related catalysts out of its bag. The WWDC event and the new few weeks and months would be critical for Apple’s growth trajectory.
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MacDailyNews Take: From Gene’s X feed to Mr. Market’s eyes!
Still, it probably wouldn’t be a bad idea to have/build a stake in Nvidia alongside owning Apple.
TGIF! Esteemed and highly respected interns, please commence your sacred duty! Prost, everyone!
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