Nvidia (NVDA) Chief Executive Officer Jensen Huang defended his company against falling stock metrics, calling Nvidia "the world's first and only growth value stock" and stating that the market misunderstands its true long-term power. His comments come as Apple (AAPL) reaches a record $5 trillion market capitalization on strong phone sales, while Nvidia trades near 10-year valuation lows despite booming profits.

Apple Stock Reaches Record $5 Trillion Market Cap

This contrast stands out as Apple reaches new peaks, with its stock touching almost $345 and pushing its overall market capitalization past $5 trillion. High demand for the iPhone 18 Pro, excitement for the upcoming foldable iPhone Duo, growth from app fees, and updates to Siri AI helped drive Apple higher.

Investors favor Apple over chipmakers like Nvidia because Apple produces predictable cash and avoids taking on the giant infrastructure costs required to run AI systems.

Analysts Say Competition Will Rise and Nvidia's Margins Could Face Pressure

David Russell, global head of market strategy at TradeStation, pointed out on September 22, 2026, that competition will intensify as major clients like Meta (META) and Alphabet (GOOGL) build custom in-house chips. He noted that companies want to reduce their reliance on Nvidia, making it likely that Nvidia's market position will weaken over time and trim gross margins.

At the same time, Eli Horton, senior portfolio manager at TCW, noted on September 22, 2026, that the drop in Nvidia's valuation shows a dose of skepticism about whether current AI spending levels can last. Higher costs for memory chips are also expected to squeeze Nvidia profit margins from 75% down toward 72% in the fourth quarter.

The contrast shows two very different investor mindsets today. Apple receives praise for safe earnings and wise spending, while Nvidia faces close questioning over future chip competition and spending limits. Even with these doubts, Nvidia sales are projected to reach $410 billion in Fiscal 2027. This could mean that Nvidia's low price offers a rare entry point for a fast-growing firm.

Which Is the Best AI Stock to Buy Right Now?

TipRanks' Wall Street analyst ranking data shows a clear split when comparing Nvidia and Apple. Wall Street analysts give Nvidia a Strong Buy rating with a Smart Score of 9 out of 10, setting a price target of $324.32 that offers over 42% upside potential.

By contrast, Apple receives a lower Moderate Buy consensus with a Smart Score of 7, and its $334.90 price target suggests a slight 1% downside risk. Analysts see Nvidia as a much better value buy today because its recent price drop leaves far more room for price gains than Apple.

Beyond Nvidia, other top tech names stand out with perfect 10 Smart Scores and big profit potential:

• Micron Technology (MU): Rated a Strong Buy with a perfect 10 Smart Score, analysts expect Micron to reach $1,565.37, giving it a top upside target of nearly 44%.
• Amazon (AMZN): Holds a Strong Buy rating and a 10 Smart Score, with a price target of $331.16 that promises over 31% upside potential.
• Alphabet (GOOGL): Earns a Strong Buy consensus and a 10 Smart Score, with target prices at $428.88 showing nearly 24% room to grow.