Apple Just Exposed a Massive Risk for Nvidia Stock

Nvidia's (NASDAQ: NVDA) nearly $3 trillion valuation hinges on a critical assumption: The company's utter dominance in the artificial intelligence (AI) accelerator market is sustainable. Nvidia's market share has been estimated as high as 95%, and while competitors including AMD and Intel offer AI chips of their own, they've made little headway against the Nvidia juggernaut.

Here's the problem: That assumption is probably not going to hold up in the long run. Nvidia has some important advantages, including a mature software ecosystem and best-in-class hardware, but cracks are starting to form. The biggest crack so far is 's (NASDAQ: AAPL) decision to avoid Nvidia's GPUs entirely while training its highly anticipated Apple Intelligence platform.

Apple is late to the generative AI party, but it's now full steam ahead bringing AI features to its iPhones, Macs, and other devices. Apple Intelligence, which will go into beta later this year, includes AI-powered writing tools, image creation capabilities, a version of Siri that isn't embarrassing, and other useful features. None of this is groundbreaking, but these features will be deeply integrated into Apple's ecosystem and available to the company's massive user base.

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Source Fool.com