**Apple’s Year-to-Date Performance**
**The News:** Reports of lagging Apple smartphone sales in China compared to Huawei and Xiaomi during the country’s Singles Day shopping event have made headlines. Data from Counterpoint Research showed a 4% decrease in iPhone units sold during the two-week sales period from Oct. 30 to Nov. 12. However, Wedbush analyst Daniel Ives remains optimistic about Apple’s smartphone standing in Asia.
**The Club Take:** The Club isn’t overly concerned about the recent iPhone sales data, believing that it doesn’t reflect the overall health of the tech giant’s business. Apple’s aspirational brand status, solid standing in the Asian market, and expansion into India make us bullish on the company’s position in the continent. Despite a slight fall in shares on Friday, Apple’s year-to-date performance remains positive, with a 52% increase.
**Nvidia’s Year-to-Date Performance**
**The News:** Nvidia has delayed the launch of its new artificial intelligence chip for China until the first quarter of 2024 due to issues with server manufacturers. This follows the U.S. government’s tighter restrictions on exporting advanced AI chips to China. Despite a 0.9% fall in stock on Friday, Nvidia has seen a 237% surge in shares this year.
**The Club Take:** The news of the delay doesn’t change The Club’s view of the chipmaker. Nvidia’s third-quarter earnings call indicated that while sales to China and other regions would be impacted by the export restrictions, demand elsewhere is more than enough to drive continued growth for the company. The three underappreciated aspects of the Nvidia story, including networking, software, and a growing customer base, carry more weight from a long-term investment perspective than a brief delay in an AI chip destined for China.
**Amazon’s Year-to-Date Performance**
**The News:** Amazon’s Prime Video will exclusively stream the Miami Dolphins and the New York Jets game on Black Friday, along with QR codes on the screen linking to Amazon’s Black Friday deals.
**The Club Take:** The deal between Amazon and the NFL signifies a move by mega-cap tech companies to go after traditional TV assets, opening up additional advertising real estate. It also marks the potential rise of television commerce, known as “T-Commerce,” which gives viewers the ability to order products on Amazon’s platform while streaming content in real-time. The game is a reminder that Amazon is continually increasing the value of a Prime membership, boosting potential sales and customer loyalty.
In conclusion, despite the headlines, The Club remains confident in the long-term potential of Apple, Nvidia, and Amazon, and sees positive performance as the year draws to a close. These companies continue to make strides in the Asian market, navigate export restrictions, and expand their offerings and reach, reinforcing their positions in the tech industry.
