Tim Cook 'Very Bullish' On Apple's Generative AI Efforts Despite Lower Capital Expenditure Than Rivals
Portfolio Pulse from Benzinga Neuro
Apple Inc. CEO Tim Cook announced a $100 billion investment in R&D over the past five years, focusing on AI, ahead of the Worldwide Developers Conference. Despite a lower capital expenditure compared to rivals, Apple is optimistic about its AI strategy. The company's approach includes using its own data centers and third-party capacity. Apple's stock has seen a 10% drop this year but announced a record share buyback program and a smaller-than-expected revenue drop. Challenges in China and competition from Huawei have impacted iPhone sales.
May 03, 2024 | 11:22 am
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Apple's significant investment in AI and strategic moves, including a massive stock buyback program, positions it for potential growth despite current challenges.
Apple's substantial investment in AI and the announcement of a record share buyback program are likely to instill confidence in investors, potentially leading to a positive short-term impact on its stock price. However, challenges in China and the competitive landscape could moderate gains.
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