Apple vs Nvidia: Can John Ternus reclaim the AI throne?

Apple is entering a new phase as John Ternus prepares to succeed Tim Cook as CEO, marking a major shift in the company’s executive era. Analysts are watching whether Apple can successfully integrate its hardware expertise with AI to maintain growth in an evolving market. 

Unlike Cook, who was known for his public diplomacy, Ternus must navigate mounting pressure from the Trump administration to shift manufacturing back to the US. Apple recently lost its title as the world’s most valuable company to Nvidia, driven by investor concerns over Apple’s slower rollout of generative AI. 

Despite a head start with Siri in 2011, Apple has struggled to transform that early advantage into a market-dominating AI platform.

Investors want to know if Ternus will engage in the AI race, or if ​he will follow Cook's lead. There is anticipation of new Apple products to boost their offering, and there is some expectation that Ternus could move fast to put his own stamp on the company,” said Kathleen Brooks, research director ​at XTB.

“The external environment will be challenging for the new CEO - tariffs, war and supply chain ​concerns need to be factored into his growth plans.

“The real question for investors is what comes next, not ​who steps in,” said Matt ​Britzman, senior equity ⁠analyst at Hargreaves Lansdown.

“Ternus now faces the challenge of turning Apple's improving AI software, including its partnership with Google's Gemini, into a genuinely AI-led device experience ​compelling enough to drive the next major hardware upgrade cycle,” Britzman said.

This change is a strategic move to combat incrementalism-the tendency to release any minor updates rather than bold new technologies.

Under Cook, Apple saw a fourfold increase in yearly profits and massive global expansion, making him one of the most successful leaders in history.

Cook is characterized as an operations guy focused on logistics, fulfillment and scaling rather than a product visionary like Steve Jobs.

While financially stable, Apple’s product line remained largely static under Cook, with critics noting a reliance on incremental updates rather than revolutionary new engines of growth.

Furthermore, Apple has faced criticism for being slow to adopt generative AI, choosing to integrate technology from Google and OpenAI rather than leading the sector independently.

Unlike Cook, Ternus has a strong hardware background, signaling a strategic shift towards new product categories like foldable phones and wearable glasses.

Analysts suggest that Ternus must escape the gravitational pull of the iPhone to ensure the company’s success for the next 20 years. 

In addition, the leadership change may indicate a move toward deeper integration of AI into hardware and a shift from defending a system to exploring new and uncertain technologies.