Apple’s rumored $1 billion Nvidia purchase not a major AI play, Kuo says

Published 31/03/2025, 15:50
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Investing.com -- TF International Securities analyst Ming-Chi Kuo has shared insights on a rumor involving Apple (NASDAQ:AAPL)’s potential purchase of Nvidia (NASDAQ:NVDA)’s GB300 NVL72s. The deal, valued at approximately $1 billion, would involve around 250 racks or 18,000 GPUs. However, Kuo suggests that this acquisition alone won’t significantly advance Apple’s AI ambitions.

There’s been some speculation in the market regarding the potential deal, but Kuo believes that its significance is being overstated. He points out that the scale of the order is relatively small when compared to other major tech companies investing in AI. For example, Meta (NASDAQ:META), another tech giant, is expected to purchase 1.3 million GPUs in 2025, which is 70 times larger than Apple’s reported order. Therefore, Apple’s procurement appears insufficient to drive substantial AI operations.

Furthermore, Kuo notes that mass shipments of the GB300 NVL72 won’t begin until the first half of 2026. Apple’s suppliers for this deal, Dell (NYSE:DELL) and Super Micro, are not top-tier assemblers like Foxconn (SS:601138) or Quanta, which suggests that Apple may not receive its racks until the second or third quarter of 2026, or possibly even later. This timeline indicates that the deal will not provide Apple with a significant AI advantage in the near future, specifically not within the next 12 months.

Kuo’s analysis provides a more grounded perspective on the rumored deal, emphasizing that it is not a major step in Apple’s AI strategy, at least not in the immediate future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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