Cash-Rich Apple Still Needs Billions To Catch Up In Generative AI Race Against Meta Or Microsoft: Analyst Ming-Chi Kuo Reveals Why
Portfolio Pulse from Ananya Gairola
Apple Inc. (AAPL) is lagging behind competitors Meta Platforms Inc. (META) and Microsoft Corporation (MSFT) in the generative AI race, according to analyst Ming-Chi Kuo. Apple's plans to procure 2,000 to 3,000 AI servers in 2023 and 18,000 to 20,000 units in 2024 represent only 1.3% and 5% of global AI server shipments respectively, falling short compared to Meta's planned purchase of 40,000 AI servers next year. Kuo suggests that Apple would need to invest several billion dollars annually to catch up with its competitors.
October 24, 2023 | 5:49 am
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POSITIVE IMPACT
Meta's lead in the generative AI race could strengthen its competitive position and future growth prospects.
Meta's lead in the generative AI race compared to competitors like Apple could strengthen its competitive position and future growth prospects. The company is poised to purchase about 40,000 AI servers next year, significantly more than Apple.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Microsoft's lead in the generative AI race could strengthen its competitive position and future growth prospects.
Microsoft's lead in the generative AI race compared to competitors like Apple could strengthen its competitive position and future growth prospects. The company is expected to purchase about 80,000–100,000 AI servers in 2024, significantly more than Apple.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
NVIDIA's AI chips are in high demand, with Apple and other tech giants being major customers.
NVIDIA's AI chips are in high demand, with Apple and other tech giants being major customers. This could potentially drive NVIDIA's revenues and growth.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Apple's lag in the generative AI race could impact its competitive position and future growth prospects.
Apple's lag in the generative AI race compared to competitors like Meta and Microsoft could impact its competitive position and future growth prospects. The company's plans to procure AI servers fall significantly short compared to its competitors, and it would need to invest several billion dollars annually to catch up.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100