Look Out… Apple’s AI Revolution May Be Here
Artificial intelligence exploded onto the scene less than two years ago with the introduction of ChatGPT in late 2022.
The number of companies scrambling to incorporate it in their businesses – and be able to talk about it on earnings calls – is staggering.
The profits have also been staggering.
Nvidia (NVDA) and its processing chips is the poster child for AI stocks, up 680% since ChatGPT was introduced.
But you may be surprised to learn that Super Micro Computer (SMCI), which we hold in my Quantum Edge Pro service, has soared 747% since Chat GPT debuted.
We are nowhere near the end of the line for massive gains from AI. Sure, prices will ebb and flow, and the talking heads will inevitably question whether the AI boom is over.
It’s not.
In fact, it may be about to catch fire again… as soon as Monday.
AAPL Could Use a Boost
Just after 1 p.m. ET on Monday, Apple (AAPL) CEO Tim Cook will take center stage at the company’s annual Worldwide Developers Conference (WWDC).
Apple’s events are normally must-see TV, but this one holds even greater interest because Cook could make the company’s biggest announcement since Steve Jobs unveiled the iPhone.
And a lot of us believe it will be AI – including my colleague, Luke Lango, who has been working his contacts in Silicon Valley. (In fact, Luke is planning an emergency briefing for tomorrow at 1:00 p.m. Eastern time. Click here to immediately sign up for the event.)
Tim Cook himself teased at least some AI moves here in 2024. In response to a generative-AI question on Apple’s first-quarter earnings call, Cook said, “We’ve got some things that we are incredibly excited about that we’ll be talking about later this year.”
Moreover, Apple has been notably quiet when many of its Big Tech brethren have been shouting from the rooftops.
Microsoft (MSFT) and Alphabet (GOOGL), for example, have been integral to the rapid 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.
Many if not most of the companies I recommend in my newsletters are eager to share their AI plans with investors. And the time may have come for the second most valuable company in the world right now with a market capitalization of $3 trillion.
AI may be the one megatrend capable of supercharging AAPL. And it could use it. Shares have gained less than 10% the last 12 months, significantly underperforming the S&P 500’s 25% surge.
Apple does not rate a buy in my Quantum Edge system, with its Quantum Score of 58.6 under the 70 threshold I like to see for new buys.
Source: TradeSmith Finance and MAPsignals.com
That could be about to change, which makes Monday’s event so interesting and important.
It could also boost lots of other AI-related stocks. I’m watching a few, and Luke Lango has his eyes on one in particular.
What We Expect
Luke showed me his analysis of what to expect on Monday, and I wanted to share some of it with you here. It’s important information…
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.
So, what can AI do for you in the Apple ecosystem? Think auto-generated playlists in Apple Music, AI-assisted writing in Pages, and 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.
The best part? Many of these features will be available on both iOS and macOS, making your Apple experience even more seamless.
In December 2023, Apple published two significant research papers on artificial intelligence, which included techniques for 3D avatars and more efficient large-language models (LLMs) for mobile.
Such advancements could put Apple in first place almost overnight. The world of finance buzzed with excitement as Apple’s groundbreaking research could revolutionize various industries, including entertainment, gaming, and virtual meetings.
If applied judiciously, Apple’s latest innovations could elevate artificial intelligence to the next level. Photorealistic digital avatars and powerful AI assistants on portable devices seemed far off just months ago, but thanks to Apple’s scientists, the future is rapidly becoming reality.
AI’s Next Big Leap?
I’ve written before about how we won’t unleash the true potential of artificial intelligence until it converges with quantum computing and next-generation networking to drive the next technology revolution.
This Great Convergence is coming, and faster than most people think.
There are many steps along the way, and Apple’s announcement could be the next big step forward.
Luke agrees…
Apple’s pivot to AI 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.
The integration of advanced AI tools into Apple’s already robust ecosystem will create a synergistic effect, amplifying the capabilities of both the hardware and software.
Apple’s track record of revolutionizing industries is unparalleled. The iPhone redefined mobile communication, the App Store democratized software distribution, and now, with AI, Apple is set to redefine the future of technology.
Monday’s event could be a throwback to the “olden days” when breakthroughs were announced, not just iterations. I’ll be watching the event closely, as well as potential opportunities.
In the meantime, check out Luke Lango’s emergency briefing tomorrow, June 7, at 1 p.m. Eastern, just 72 hours before the big show.
Luke plans to update folks on how the mainstream media is overlooking the significance of Apple’s move, and how Monday’s announcement could significantly boost at least one small-cap tech stock this summer.
Click here to immediately sign up for the event.
The AI boom is not over. If you missed any of the big gainers so far, there are more opportunities coming down the pike.
Talk soon,
Jason Bodner
Editor, Jason Bodner’s Power Trends
Disclosure: On the date of publication, Jason Bodner held a position in Nvidia (NVDA), Apple (AAPL), and Alphabet (GOOGL) mentioned in this article.