Apple closed 1.31% higher at $312.66 on local time, bringing its market capitalization to $4.592 trillion and narrowing the gap with NVIDIA's $4.732 trillion to approximately 3%. The iPhone maker is drawing investor attention by maintaining a selective approach to AI investments, contrasting with the aggressive capital expenditure increases pursued by other big tech firms. Apple's restrained spending strategy is positioning the company as a defensive play amid growing concerns over AI overinvestment across the technology sector.
Apple Narrows Market Cap Gap with NVIDIA to 3%
Apple's market capitalization reached $4.592 trillion following the local time trading session, closing the distance with NVIDIA, which has held the global #1 position for the past year at $4.732 trillion. The gap between the two companies now stands at approximately 3%. Apple's stock price of $312.66 represents a 1.31% gain for the session.
Apple Reduces Capex 36% While Alphabet and Microsoft Surge
Apple reduced its capital expenditure by 36% in Q1 compared to the year-ago period, diverging sharply from competitors' AI spending patterns. Alphabet increased its Q1 capex by 107% year-over-year, while Microsoft expanded spending by 85%. Despite lower overall capex, Apple is developing custom AI server chips through partnerships with Broadcom and TSMC, focusing investment on specific AI infrastructure needs.
Analyst Forecasts 7-8 Million Foldable iPhone Units in H2
Ming-Chi Kuo of TF International Securities projects that the foldable iPhone, referred to as 'iPhone Fold,' will launch in September with assembly shipments of 7-8 million units in H2. Kuo stated that based on exchanges with resellers, strong demand is expected to persist even if the foldable iPhone is priced between $2,300 and $2,500. The analyst noted this pricing range corresponds to approximately 3.5-3.8 million Korean won.
Apple Stocks Rally as Memory Sector Adjusts
Apple shares have experienced a relief rally as memory stocks underwent corrections due to expectations of slower DRAM price growth. The company's loyal customer base provides stronger pricing power compared to other smartphone manufacturers, enabling Apple to pass through cost increases even during extended periods of rising memory prices.
FAQ
What is Apple's current market capitalization gap with NVIDIA?
Apple's market capitalization stands at $4.592 trillion, approximately 3% below NVIDIA's $4.732 trillion, as of the local time trading session.
How did Apple's Q1 capex compare to Alphabet and Microsoft?
Apple reduced its Q1 capital expenditure by 36% year-over-year, while Alphabet increased spending by 107% and Microsoft by 85% during the same period.
What are the shipment forecasts for Apple's foldable iPhone?
Analyst Ming-Chi Kuo projects 7-8 million foldable iPhone units will be shipped in H2 following the September launch, with pricing expected between $2,300 and $2,500.
