Apple sits $42 billion behind Nvidia. That is a rounding error with a ticker symbol.
A 0.83% gain closes the gap. Apple closed Thursday at $348.22. Nvidia closed at $212.21. One of these companies sells phones. The other sells the shovels for a gold rush that is now having second thoughts. Both are worth about $5 trillion, which is a number no human can picture and no retail trader can spell.
The crown has changed hands roughly two dozen times since the start of 2024. Two dozen. This is not a throne. It is a bar stool at last call.
Jeff Kilburg, founder of KKM Financial, says Apple is set to reclaim the title. He says earnings on Nov. 2 may push it over the top. Revenue expectations sit around $113 billion. Apple guided to 9% to 11% growth. Kilburg wouldn't be surprised if everyone watched Apple again. Everyone was already watching Apple. That is how it got to $5 trillion.
Here is the fun part. Nvidia earned $59.7 billion last quarter. Apple earned $29.8 billion in its most recent reported quarter. Nvidia makes about twice the money and gets valued like it makes slightly more. Investors looked at that math and chose the company with the $1,999 foldable phone and reviews described as tough.
Nvidia is down 7% this month on AI financing worries. Apple is up 4%. Apple did not win the market. Nvidia just tripped in front of it.
Retail traders will read "momentum could continue" and buy at the top. Then they will watch Tim Cook's successor, John Ternus, hold his first earnings call and say the word "supply" a lot. Apple already warned supply would get tighter. Delivery estimates for the Duo reportedly stretch into January. Congratulations on your $1,999 phone. It arrives after your margin call.
The crown tells you nothing about either company. Jeff Kilburg is right about one thing, though. People will be watching. Mostly their brokerage accounts, the way you watch a dog eat something off the sidewalk.
Photo by Brecht Corbeel on Unsplash
Leave a Comment