Apple Will Surpass Nvidia to Dominate the AI Stock Market
- The bank said the AI investment trend is entering the third and final phase, which is devices, which will be a major win for Apple and the upcoming...
- While Nvidia has largely dominated the infrastructure stage, it seems like the right time has come for AI technologies to move to on-device capabilities, leading to large-scale adoption...
- Apple is preparing for this shift with the upcoming launch of “Apple Intelligence,” which brings AI capabilities to the iPhone lineup.
The Apple logo at a store in Washington, DC, USA. Photo: AFP/TTXVN
The bank said the AI investment trend is entering the third and final phase, which is devices, which will be a major win for Apple and the upcoming iPhone 16 product cycle.
Currently, the AI investment trend is in the infrastructure stage, with chips and servers being in the first stage, and networks and storage being in the second stage.
While Nvidia has largely dominated the infrastructure stage, it seems like the right time has come for AI technologies to move to on-device capabilities, leading to large-scale adoption by consumers and businesses.
Apple is preparing for this shift with the upcoming launch of “Apple Intelligence,” which brings AI capabilities to the iPhone lineup. Early signs suggest the features are powerful enough to spur a major upgrade cycle for next-generation iPhone models, Citi analyst Atif Malik said.
Analyst Malik says developer feedback on iOS18’s beta AI features, including the recently launched photo feature to remove unwanted objects, suggests AI is a compelling upgrade for next year’s iPhone refresh.
Apple is expected to announce the iPhone 16 lineup at an event on September 9th, dubbed “It’s Glowtime.” Along with on-device AI capabilities, the iPhone 16 lineup is expected to include a new A18 chip built on a 3-nanometer process, which will offer more powerful and energy-efficient performance, improved cameras and microphones, and better battery life.
Hardware upgrades to the iPhone 16 will play a key role in supporting new AI features, and Apple will focus on showcasing how these upgrades will better support “Apple Intelligence,” which is expected to officially launch later this fall.
While the iPhone 16 will kick off Apple’s AI era, it will be the launch of the iPhone 17 in 2025 that will fuel the upcoming sales frenzy.
Mr. Malik estimates that Apple will sell 85 million iPhone 16 units in 2024 and 92 million iPhone 17 units in 2025. Overall, Mr. Malik expects Apple to sell a total of 228 million iPhones in 2024 and 241 million iPhones in 2025.
Mr. Malik believes that Apple is the company best positioned to drive the adoption of AI technology because Apple is the leader in the premium smartphone market and has the ability to seamlessly integrate software and hardware.
Analyst Malik rates Apple shares as buy and predicts the stock price will rise to $255, equivalent to a 13% increase from the closing price on August 28.