Apple’s AI Revolution Is Finally Here

By Michael Salvatore June 9, 2024

Listen to this post

Note from Michael Salvatore, Editor, TradeSmith Daily: This week, you can confidently expect mainstream tech and financial journalists to get the biggest story in AI completely wrong.

But thanks to his industry contacts in Silicon Valley, Luke Lango from our corporate partner InvestorPlace has the real story you need to see.

In short, we could be on the eve of a massive AI revolution set to take place right on the device where you may be reading this email.

And it could have huge implications for a tiny, unheard-of tech company as it makes a landmark partnership with one of America’s biggest blue-chip tech companies.

The news that kicks everything off could come as soon as tomorrow – so I’ll let Luke fill you in on what he’s found. Read on…

Apple’s AI Revolution Is Finally Here

By Luke Lango, Senior Investment Analyst, InvestorPlace

Tomorrow, June 10, just after 1 p.m. Eastern, Tim Cook is expected to take the stage at Apple Park in Cupertino, California… and he could make his company’s biggest announcement since Steve Jobs revealed the iPhone.

You may have some idea of what the Apple Inc. (AAPL) CEO’s announcement could be. After all, only one megatrend in the world right now is capable of supercharging Apple — artificial intelligence (AI).

Ever since the release of ChatGPT, generative AI models have surged in popularity. And that’s led to a war among Big Tech companies to use AI to make their products faster, more efficient, and more cutting edge.

Microsoft (MSFT) and Alphabet (GOOGL), for example, have been integral to the pace of AI innovation thus far. Microsoft, of course, is a major funder of OpenAI… and most of us have seen Google’s AI Overviews during our web searches over the past week or two.

Apple, however, has kept its cards close to the vest.

Tim Cook has teased some AI updates for 2024. “We’ve got some things that we are incredibly excited about that we’ll be talking about later this year,” he said in response to a gen-AI question on Apple’s first-quarter earnings call (more on this later).

Whatever AI path Apple decides to take, AAPL analysts are convinced that Cook’s announcement at this week’s Worldwide Developers Conference (WWDC) – which may happen as soon as tomorrow – could be the “AI Golden Goose.”

That’s why Friday, just days before this massive Apple AI announcement, I took the stage myself to address the hype. (You can watch the replay of that event immediately by clicking here.)

In fact, it’s not hyperbole to say that I’m making one of the biggest calls of my career here… one about a partnership that could significantly boost a mostly unheard-of small-cap tech stock (more on that below).

What We Expect From Apple’s AI Announcement

Not much is publicly known about Apple’s AI innovations or plans, but that’s where my contacts in Silicon Valley come in handy.

Most insiders expect Apple to announce overhauls of its software ecosystem, particularly through AI enhancements. That means iOS, iPadOS, macOS, and all the other Apple operating systems will be getting native AI integration.

While Apple is playing catch-up with Microsoft in the AI space, Bloomberg’s Mark Gurman foresees iOS 18 as a “groundbreaking” AI software update.

Imagine your iPhone helping you edit photos, craft messages, and even jazz up your emojis using artificial intelligence. And that’s just the beginning.

Earlier last month, Apple rolled out new iPad Airs and Pros. Apple’s newest iPad Pro is its slimmest device yet, sporting the new Apple M4 chip to power its AI capabilities. This chip isn’t just about speed; it’s designed to handle AI tasks more efficiently. The iPad Air also received a redesign. It comes with Apple’s M2 chip, which isn’t as advanced as the M4 but powerful nonetheless.

If past keynotes are any clue, expect a lot of buzz around these in-house chips and their AI prowess at WWDC.

So, what can AI do for you in the Apple ecosystem? Think:

Auto-generated playlists in Apple Music…
AI-assisted writing in Pages…
Even slide-deck creation in Keynote.
Enhanced search capabilities in Spotlight, a more conversational Siri, and Siri’s integration with Messages and Shortcuts are also on the horizon.
Developers might get a boost too, with AI helping to write code in Xcode.

The best part? Many of these features will be available on both iOS and macOS, making your Apple experience even more seamless.

While it’s very likely we’ll see a preview of iOS 18 with new AI capabilities, we can also dig in the archives to understand what Cook has up his sleeve…

What Apple’s Research Can Tell Us

Back in December 2023, Apple published a significant research paper on creating efficient large-language models (LLMs) for mobile.

This could put Apple in first place almost overnight, as Apple’s products would be one of the first to run complex LLMs natively.

Imagine having the power of advanced AI assistants and chatbots right in your pocket, running smoothly on your iPhone or iPad. This isn’t a far-off dream; it’s becoming a reality thanks to some clever innovations.

In one of the research papers from December, we saw that Apple has technology that can improve the speed of AI tasks by four to five times, compared with traditional methods. On a GPU, the improvement is even more dramatic, with speeds increasing by 20 to 25 times.

This breakthrough means that soon, your mobile devices could handle complex AI tasks with ease, making advanced AI tools more accessible than ever. It’s a game-changer for how we interact with technology, bringing powerful AI capabilities right to our fingertips.

These innovations could elevate artificial intelligence to the next level.

This move marks a significant change for Apple, which had been notably absent from the AI arms race.

But I think Apple’s been waiting for the right moment.

You see, AI systems currently have the biggest impact in the “text” world.

But the best fit for an LLM is with Siri, a voice-based system.

Text-based AIs are so good because there is an abundance of easily accessible and high-quality text data in the world. They’ve benefited from having a lot of fuel from the start.

With Apple joining the fray, I think we’re about to see a new level of voice-based AI. And that could be the killer app Apple has been working on.

And Apple’s ecosystem – the family of apps and software that make up its user experience – is a BIG deal.

Look at Amazon (AMZN) — from the moment the company went public on May 15, 1997, to the moment just before it launched its iPhone app on Dec. 3, 2008, its stock was up around 268%. Not bad.

But the gains that came after Amazon launched its mobile app are truly staggering.

If you bought AMZN stock on Dec. 3, 2008, you could’ve made more than 6,300% by December 2020.

So, 268% versus nearly 7,000% over roughly the same time frame. This is only possible because Amazon hitched its wagon to Apple’s ecosystem.

Imagine how successful Facebook or Instagram would have been if you had to sit at a desktop to log in every time? You’d never use it.

Imagine if you had to be at your laptop every time you wanted to watch Netflix? E-commerce, social media, and the streaming revolution would not have been as ubiquitous today if not for Apple’s ecosystem bringing it to the masses.

Now, consider the implications of Apple’s pivot to AI. This is not a mere shift. It’s a seismic transformation.

Apple’s ecosystem is poised to become the crucible where next-generation AI technologies are forged and perfected.

Moreover, Apple’s vast user base provides a treasure trove of data that could be harnessed to train and refine AI models. This data, combined with Apple’s expertise in hardware and software integration, will enable the creation of AI systems that are not just intelligent but also seamlessly integrated into the daily lives of users.

This is not only about catching up with competitors… it’s about setting a new standard and reshaping the technological landscape.

The Final Word

Tim Cook’s keynote at WWDC this week is expected to be monumental for AI, and I believe it will come with a partnership announcement that could significantly boost a mostly unheard-of small-cap tech stock.

This tiny sub-$12 company could soar 1,000%-plus after tomorrow, following Apple’s 100x AI announcement.

But most media outlets are overlooking this crucial aspect of Apple’s AI strategy, and most investors aren’t even aware that this tiny company exists, let alone that it’s positioned at the center of a revolution.To learn more, watch my emergency briefing now – before Apple’s historic AI announcement.

During this briefing, I will:

Show you how the mainstream media is overlooking the significance of Apple’s AI move.
Explain how Apple’s AI announcement could significantly boost a small-cap tech stock this summer.
And provide you with a step-by-step financial analysis of why this small-cap stock could yield tenfold returns in 2024 due to AI integration in 1.4 billion iPhones.

Click here to uncover potential gains that the broader market may be missing.

Luke Lango
Senior Investment Analyst, InvestorPlace