Will Apple’s big AI reveal impress Wall Street?

Caught flatfooted, Apple is feeling the heat in the generative AI race. While they were early innovators with Siri, competitors have surged ahead with chatbots and other creative AI applications. To close the gap, Apple is expected to unveil a major Siri upgrade at their upcoming developer conference, focusing on deeper app integration and potentially incorporating learnings from AI giants like OpenAI. But will Apple’s big AI reveal be enough to suitably impress investors?

Patrck Seitz for Investor’s Business Daily:
‎

Apple blazed the trail for hot tech trends with products like the Mac, the iPhone and the App Store. But in the frenzy over artificial intelligence, the tech giant is considered AWOL. The Silicon Valley behemoth’s Big Tech peers led by Microsoft, Google and Meta have grabbed the AI spotlight — and that has weighed on Apple stock, which has treaded water this year while the others climbed.

All that could change this month. Apple is taking the wraps off its much-awaited AI offensive at the Cupertino, Calif.-based company’s Worldwide Developers Conference. The annual Apple WWDC event, which starts June 10, could be a make-or-break event for Apple stock.

Wedbush Securities analyst Daniel Ives calls the conference “the most anticipated Apple event in a decade.” He told Investor’s Business Daily. “Every other tech stalwart has unveiled its AI strategy and vision with one exception — Cupertino.”

The view that Apple lacks a clear AI game plan has cut $25 to $30 off the price of Apple stock, Ives estimates. With Apple stock now trading near 192, that suggests a 13% to 16% damper on the price.

Gene Munster, managing partner at Deepwater Asset Management, agrees. “If they had a clear strategy that people believed in, I think the stock would be 15% higher,” he told IBD. “It’s a big overhang, especially given what their growth has looked like over the past two years, which has been nonexistent.”

Apple must clear a high bar. Cook will unveil the Apple AI strategy after well-received AI-focused events from Alphabet unit Google, Microsoft, and ChatGPT creator OpenAI.

“It’s a Gettysburg Address-type deal for Cook,” Ives said. “This can’t be a fluff event. Developers need to come away knowing that this is a new era for Apple.” He added, “The AI revolution is the biggest technology change we’ve seen in 40 years. And Apple can’t be on the outside looking in.”

Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
‎
MacDailyNews Take: No pressure, Apple.

Apple was caught flat-footed, due to a lack of vision on the part of leadership… So, the only solution is to partner with a [Google, OpenAI, Baidu, etc.] for the real GenAI stuff while pretending (marketing) really hard that some on-device AI Apple has whipped up in a few months is “insanely great Apple innovation” that’s at the heart of Apple’s 2024’s AI announcements when it’s really just an adjunct… Watch Apple make a big show of its on-device AI at WWDC and run many ads touting it from June onwards.

Apple hopes to buy time for the data center buildouts and investments that will be required for them to someday own their own AI technology and not have to license it from the likes of [Google, OpenAI, Baidu, etc.]. – MacDailyNews, April 1, 2024

See also: Apple is just weeks away from unveiling its big AI marketing effort – May 20, 2024
‎
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!

Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.

The post Will Apple’s big AI reveal impress Wall Street? appeared first on MacDailyNews.