According to reports, Apple (AAPL) is considering returning to the enterprise server market. Sources say that Apple may team up with behemoth chip manufacturer Nvidia (NVDA) for its networking technology. The report suggests that Apple is developing an AI server that could be offered in two variations, a smaller unit with two M8 Ultra chips and a larger unit with four M8 Ultra chips. Let’s discuss how the stock market may react to Nvidia potentially providing networking technology for Apple.
Will The Stock Market React To Nvidia Building For Apple?
The news around Apple re-entering the enterprise server market comes amid a global demand for running AI models. Enterprise workload is moving from training AI models to running them. Apple likely aims to cater to this growing market.
Apple’s re-entry into the enterprise server market was backed by then-hardware chief, now CEO, John Ternus, when it began about a year ago. Given Ternus’ new position at the helm, chances are high that he will see through the project.
According to reports, Apple’s AI server is not expected to hit markets anytime before 2029. While Nvidia’s name has been attached to the project, Apple could move ahead without the former’s technology. On top of that, there is still a possibility that the entire project could be cancelled altogether.
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Apple is no stranger to having competitors build its products. The most famous example is Samsung building many components of the iPhone. While both companies are rivals in the smartphone sector, Samsung undertakes a lot of manufacturing capabilities for Apple. Therefore, Nvidia providing networking technology for Apple’s AI server is nothing out of the ordinary.
If at all, the stock market will likely respond enthusiastically to Apple entering the AI server arena. The company made waves after the launch of its own silicon, starting with the M1, which was a major industry disruptor. A similar pattern could emerge with its AI servers as well.