Wedbush analyst Dan Ives has drawn parallels between Apple Inc.’s (AAPL) stock performance following WWDC 2024 and Nvidia Corp.’s (NVDA) robust second-quarter earnings. While initial reactions to WWDC 2024 were negative, Apple’s stock has since climbed from around $190 to $226.
Ives attributes this turnaround to Apple’s strong performance on key metrics like demand, guidance, and growth, which he considers crucial for evaluating a company’s success. He sees a similar pattern in Nvidia’s performance, despite a slight dip in the company’s stock price following its strong earnings report.
Nvidia exceeded expectations in its second quarter, driven by robust data center revenue. However, the company’s gross margin contracted from the first quarter. Despite these positive results, Nvidia’s shares declined slightly. The company announced modifications to its Blackwell GPU mask to increase production yields, with production ramping up in the fourth quarter and continuing into fiscal year 2026. This announcement has generated significant customer anticipation.
Ives highlights the importance of focusing on the core metrics of a company’s performance, emphasizing that short-term stock fluctuations don’t always tell the whole story. His comparison between Apple and Nvidia suggests that investors should consider the long-term growth potential of a company when evaluating its stock performance.
Nvidia shares closed down 2.1% on Wednesday at $125.61, according to Benzinga Pro data. The stock was down 1.6% in premarket trading on Thursday.
