Nvidia (NVDA) Stock Dips Despite Apple Partnership Announcement - GuruFocus

Despite announcing a partnership with Apple, NVIDIA's stock price declined, reflecting market concerns about the gap between expectations and reality regarding NVIDIA's continued growth in the AI chip... Read original →

NVIDIA’s partnership with Apple reveals more vulnerability than opportunity: Apple’s in-house NPUs are marginalizing GPU relevance in on-device AI, forcing NVIDIA to pivot toward low-power inference chips—a shift that threatens its high-margin data center model. Geopolitically, tightening U.S. export controls and supply chain fragility in Taiwan, China, compel costly reconfiguration of assembly and test operations. Competitively, AMD and Intel are exploiting this inflection point with open architectures and cloud-custom silicon, while Apple’s vertical integration could permanently cap demand for external AI accelerators. Over the next 12–24 months, NVIDIA’s valuation will hinge less on revenue growth and more on whether its CUDA moat can withstand the fragmentation of AI inference workloads as training saturation erodes performance-based pricing power.