Lynx Equity Strategies Offers Recommendations Ahead of GTC Conference: Buy Apple Shares, Reduce Nvidia Holdings

Lynx Equity Strategies analysts have issued a recommendation to purchase Apple (AAPL) shares and decrease holdings in Nvidia (NVDA) ahead of the upcoming Nvidia GPU Technology Conference (GTC) scheduled for the end of the month.

In a note released on Friday, the analysts highlighted the crucial role companies like Apple and Google (GOOGL) must play in the widespread adoption of artificial intelligence. Despite disappointing guidance from their management teams, Lynx Equity Strategies argues that AAPL and GOOGL should no longer be utilized as capital sources.

The comments follow an earnings statement from Taiwan Semiconductor (TSM), suggesting compelling reasons for investors to maintain their investments in AAPL and asserting that it is still a viable and appropriate capital source rather than investing in NVDA.

Analysts anticipate a common strategy among investors to sell companies perceived as lagging behind in artificial intelligence, such as AAPL and GOOGL, before the GTC event, while investing in NVDA and AMD (Advanced Micro Devices) (AMD) due to their profitability over the past year.

However, a surprising deviation from this trend has been observed recently, with both NVDA and AMD shares experiencing a decline from their recent peaks despite positive developments.

On Friday, NVDA and AMD shares lost 5.55% and 1.9%, respectively.

In summary, analysts express concerns that the industry as a whole may struggle to maintain a growth rate similar to Nvidia’s, testing the patience of investors accustomed to its rapid expansion. They also question the widespread adoption of artificial intelligence without the significant participation of industry leaders AAPL and GOOGL.

“It is possible that they are falling behind. If so, are investors willing to bet that the artificial intelligence revolution can gain significant ground relying solely on one major cloud service provider (MSFT) for global applications?” they ponder.

“The artificial intelligence revolution is undoubtedly happening and will integrate into our daily lives. We merely draw attention to the inappropriate mismatch in the time and resources required to spread this revolution globally.”

“Without the participation of AAPL and GOOG, the revolution cannot emerge meaningfully within a reasonable timeframe. If they are truly lagging, then this is the current state of affairs.”

source: prepared by Melisa Beğiç

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