Jim Cramer thinks that Apple Inc.’s AAPL partnership with Nvidia Corp. NVDA for the Vision Pro mixed reality headset could dominate investors’ minds by next week.
What Happened: Cramer thinks the antitrust case brought by the U.S. Department of Justice against Apple will be on investors' minds for just one week.
By next week, investors will start thinking about Apple's Nvidia partnership, according to Cramer. Apple has teamed up with Nvidia to stream advanced 3D experiences from dedicated AI data centers around the world, directly to the Vision Pro.
"I warn people that one week from now you will not be thinking about US v. Apple and will be thinking about Vision Pro meets Nvidia Omniverse for the biggest enterprise stream Apple has developed."
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According to a live demonstration of the Nvidia Omniverse technology, the company showed off an interactive, physically accurate digital twin of a car being streamed in full fidelity to the Apple Vision Pro's high-resolution displays.
The demo featured a designer using a car configurator application developed by CGI studio Katana on the Omniverse platform.
This could eventually become the "biggest" enterprise revenue stream, according to Cramer.
On the other hand, Wedbush’s Dan Ives also thinks that the risk to Apple’s business model due to the DOJ case won’t be significant.
“We do not expect any business model changes for now with DOJ case, but Apple clearly is going to have to find a way to eventually settle this case, pay a hefty fine, and ultimately find some compromise with developers on the App Store down the road.”
"Our Goat thesis unchanged."
Why It Matters: The U.S. Department of Justice is reportedly gearing up to file a lawsuit against Apple for its illegal iPhone dominance.
The lawsuit alleges that Cupertino violated antitrust laws by restricting hardware and software access to the iPhone from competitors.
This comes close on the heels of the European Union's Digital Markets Act, which forced Apple to open up iOS to allow for third-party app stores on the iPhone.
Apple was hit by a $1.95 billion fine in the EU in another antitrust case that was brought by Spotify Technology SA.
Apple has also been criticized by Microsoft Corp., Meta Platforms Inc.'s Mark Zuckerberg, Spotify cofounder and CEO Daniel Ek, and Epic Games' Tim Sweeney, among others.
Price Action: At the time of writing, Apple’s stock was down 1.06% in Thursday's premarket trading, compared to its previous close at $178.67. Meanwhile, Nvidia's stock was up 1.88% in premarket trading compared to its previous close at $903.72, according to Benzinga Pro.
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Photo courtesy: Nvidia
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