Apple, Tech Giants 'About To Get Dwarfed By Generative AI,' Analyst Warns
Portfolio Pulse from AJ Fabino
Needham & Company has warned that tech giants like Apple Inc could be overshadowed by the rise of Generative AI, as new entrants use large language models (LLMs) to redefine industries. The analyst reiterated a Buy rating on Apple with a $195 price target. The analyst also noted that Amazon.com, Alphabet Inc, and Microsoft Corp are the clear standouts so far in the AI field. However, the cost of procuring data for the LLMs is increasing, which could lead to future LLMs having higher price tags.
September 07, 2023 | 7:16 pm
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Apple could be overshadowed by the rise of Generative AI, but its ecosystem could act as a bulwark against major setbacks.
The rise of Generative AI could potentially sideline traditional tech powerhouses like Apple. However, Apple's strong ecosystem could protect it from major setbacks.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Amazon is one of the clear standouts in the AI field, according to Needham & Company.
Amazon is identified as a standout in the AI field, which could potentially boost its stock in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Alphabet Inc, bolstered by Google's arsenal spanning cloud computing, generative AI, and a trove of first-party global consumer data, is poised to possibly eclipse Apple in the AI race.
Alphabet, backed by Google's resources, is identified as a potential leader in the AI race, which could boost its stock in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
Microsoft is one of the clear standouts in the AI field, according to Needham & Company.
Microsoft is identified as a standout in the AI field, which could potentially boost its stock in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70