Nvidia (NVDA) has been dominating the tech AI world, but concerns have arisen about whether the semiconductor giant can sustain this momentum. CFRA Research senior equity analyst Angelo Zino and Neuberger Berman managing director Dan Flax join Market Domination to discuss if Nvidia can maintain its lead over Apple (AAPL).
Zino believes Nvidia will continue to be “the main driver in AI monetization” for the next few years. He also foresees a “broadening in the customer market” within the cloud, saying he “remains very excited” about the company, noting it will outperform Apple within the next year.
Flax shared a similar sentiment, stating, “We can continue to own both names,” but adding, “for new money, I would have a little bit of a preference for Nvidia here, given the stronger growth over the next twelve to twenty-four months.”
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This post was written by Angel Smith
Video Transcript
And guys, let’s get to the other juggernaut, uh, the one that had the little one that had its stock split that was effective today.
Talking about NVIDIA.
Of course, as you’re sort of weighing these two stories and Angelo, I’ll start with you on this one.
Apple or NVIDIA, if you’re choosing one, to add to right now, yeah, I mean, for us, it’s it’s still NVIDIA.
I mean, that that’s really going to continue to be the the major, um, driver in terms of a I monetization here over the next 3 to 5 years.
I don’t think there’s really much doubt in that.
When you kind of compare the two stories here.
Obviously, you’re paying a little bit more for in video.
But really not much more when you kind of look at some of the multiples, um, that are out there for both companies.
So, um, as far as kind of the content growth story is for NVIDIA, as you kind of move to Blackwell here, um, as well as kind of, you know, the they’re on, you know, ongoing shift towards more kind of total system sales out there.
But not only the GP U but also the CPU the networking chips out there as well as kind of the broadening of the kind of the the the customer market out there, really?
Just, you know, over the last couple of, uh, 1518 months, it’s largely been focused on, um, cloud side of things.
They’re gonna get more kind of, um, enterprise adoption as well as kind of greater sovereign A I opportunities out there.
So we remain very excited even with this massive move that you’ve seen from NVIDIA here over the next 15 to 18 months that it likely will outperform apple here over the next three years or so.
Dan, Same question to you, I. I give you two choices.
Dan Apple or NVIDIA Tim Cook Jensen Wong, which one you choose?
We continue to own both names, Uh, for for new money, um, I. I would have AAA little bit of a preference for NVIDIA here, just given the stronger, uh, growth over the next 12 to 24 months.
The story there is actually quite similar to Apple.
Both companies have reinvented themselves.
NVIDIA’s own history was in gaming, and obviously they have pivoted and and and really, uh, uh, helped to to reimagine the data centre, uh, across many, many different elements.
The key there and we we recently heard about the Ruben, uh, platform that will come out in a couple of years is that they’re continuing to to innovate.
They’re continuing to empower developers to build on top of their platform.
That’s a data centre comment.
And then Apple does that, uh, on the devices.
And so there’s some similarities and parallels with both companies the the key and and uh sometimes O over.
Overlooked element is is the empowerment of these developers when you get millions and millions of people writing to your platform, um, creating on top of what you’ve built that’s incredibly sticky, and that helps NVIDIA and Apple during times when growth is not as robust.
But I think NVIDIA remains well positioned in the data centre, and I continue to like Apple, uh, as a play and and an interesting and attractive growth story in Mobile
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