Nvidia Earned About Twice as Much as Apple Last Quarter. Its Stock Is Worth Only About 20% More.
Why are investors still paying far more for every dollar the iPhone maker earns?
Overview
Nvidia (NASDAQ:NVDA) now out-earns Apple (NASDAQ:AAPL) by a large margin. The artificial intelligence (AI) chip leader posted net income of $59.7 billion for its fiscal second quarter of 2027 (ended July 26, 2026). Apple earned $29.8 billion in its fiscal third quarter of 2026 (ended June 27, 2026), about half as much.
But the stock market values the two far more closely. With Nvidia's shares near a record high at roughly $242 as of this writing, its market cap is about $5.8 trillion. Apple, at about $333 a share, is worth about $4.9 trillion.
Details
Nvidia's market value, in other words, is only about 20% bigger than Apple's, even though its latest quarterly profit was about 100% bigger. I think this gap says less about Apple than about how much the market trusts Nvidia's earnings to last.
Source
Originally published at www.fool.com.