Nvidia Outearned Apple in Latest Quarter Despite Smaller Market Cap Premium
In its fiscal second quarter of 2027 (ended July 26), Nvidia reported net income of $59.7 billion, nearly double the $29.8 billion earned by Apple during its fiscal third quarter of 2026 (June 27). Despite this significant earnings gap, Nvidia's market capitalization is only about 20% higher than Apple’s at roughly $5.8 trillion versus $4.9 trillion. The disparity reflects differing investor perceptions regarding the sustainability of each company's profits. While Nvidia has seen a sharp rise in quarterly net income—up 126% year over year—Apple maintained steady earnings, bolstered by its services segment and resilient product demand. Even after adjusting for one-time gains like investment-related profits at Nvidia or tariff refunds at Apple, the AI chipmaker still outperformed. Over a full fiscal year, Nvidia's net income was about 50% higher than Apple’s due to strong performance in data center sales driven by its AI chips. However, Apple remains more stable with diversified revenue streams and consistent earnings across economic cycles.