Google and Apple Surge on AI News; Nvidia Eyes Growth with New Chip Unveilings

Google (NASDAQ: GOOG), Apple (NASDAQ: AAPL), and Nvidia (NASDAQ: NVDA) saw notable stock price movements following news related to artificial intelligence (AI) developments today. The market reacted very positively to reports of a potential AI partnership between Google and Apple.

At the same time, the excitement surrounding the anticipated announcements at Nvidia’s annual developer conference led to the AI firm’s stock price gaining at market open.

Google and Apple Stock Open High After Potential AI Deal

On the morning of March 18, 2024, the tech industry was abuzz with the significant stock price gains of two giants: Google and Apple. Google’s stock opened at an impressive $149.38, a substantial increase of $7.21 or 5.07% from its closing price on March 15. Similarly, Apple’s stock opened at a promising $175.57, showing a gain of $2.95 or 1.71%.

Apple and Google are reportedly discussing integrating Google’s Gemini artificial intelligence engine into the iPhone. The potential partnership aims to license Gemini for upcoming iPhone software features in 2024, marking a significant step forward in adopting generative AI technology.

While the agreement’s specific terms, branding, and implementation details have not been finalized, the news has already positively impacted the stock market. If it goes through, the deal could be announced during Apple’s annual developer conference in June.

The strategic alliance between Apple and Google promises significant benefits for both entities. The deal could allow Google to expand its AI services to over 2 billion active Apple devices, potentially positioning it to compete with Microsoft-backed OpenAI.

Moreover, the partnership could address investor concerns about Apple’s slow AI application rollout, which has led to a 10% decline in its shares and impacted its valuation as the world’s most valuable firm.

Analysts remain bullish on both companies, with a 1-year target estimate of $162.20 for Google and $201.28 for Apple.

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Nvidia Stock Gains as Developer Conference Kicks Off

Nvidia (NVDA) opened the market on March 18, 2024, with a strong performance. Its stock price surged to $903.30, up $24.93 or 2.84% from its closing price on March 15. The company’s market capitalization now stands at an impressive $2.196 trillion, reflecting its dominant position in the graphics processing unit (GPU) and artificial intelligence (AI) chip market.

Nvidia’s annual developer conference will kick off today with anticipation building around new chip announcements from CEO Jensen Huang, particularly the next-generation B100 AI processor, which is expected to outperform its predecessor, the H100, significantly.

As the dominant player in the AI semiconductor market, holding an 80% share of the data center AI chip market last year, Nvidia is looking to maintain its lead despite increasing competition from Intel and AMD.

The company’s expanding software and services business, which achieved a $1 billion annual run rate last fiscal year, will also be a focus at the event. GTC 2024 marks the first in-person event since 2019, and attendance is expected to double to around 16,000 people. Huang’s keynote address will take place in the largest venue ever secured by Nvidia for such an occasion.

Do you see AI being a long-term narrative for big tech into the next few years? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.