Apple, Microsoft, Nvidia Grapple for AI Supremacy: Will Generative AI Lead to another 'iPhone Moment'?
Summary:
Microsoft and Nvidia are experiencing significant growth, outperforming the S&P 500's average, primarily due to their investments in generative artificial intelligence (AI). However, Apple's stock has remained stagnant in the early months of 2024. Its growth largely sustains on iPhone sales, putting it at a disadvantage as interest in aging voice assistant technologies like Siri declines amid advancements in AI. Industry rumors suggest Apple is secretly developing its generative AI systems, a move that could potentially lead to an "iPhone moment" and put the tech giant back on top.
Apple and Microsoft have been juggernauts of the global business stage, shifting between the number one and two spots since 2023, with Microsoft occasionally overtaking its rival. Still, being in second position is nothing to scoff at, with the next nearest competitors, Saudi Aramco and Alphabet (Google), struggling to match the duo's trillion-dollar value. However, several analysts worry about Apple's capabilities to compete against the AI-centered businesses topping the chart.
Against the average growth registered in the S&P 500 in 2024, both Microsoft and Nvidia exhibited an increased prosperity. While Microsoft shares saw a 7% rise, Nvidia outdid them with a 10% increment, against S&P 500’s minor 2.5% increase. Both corporations reached their peak records in 2023, with Nvidia leading the S&P 500 overall. On the contrary, Apple shares have remained static for the first month of 2024. A flourishing first quarter is anticipated for Nvidia and Microsoft by experts with the hope that the prosperity will persist throughout the year. These predictions are mainly based on the anticipation of continued consumer and business interest in AI products and services. Apple, however, remains a question until its plans for the rest of the year are unveiled.
Microsoft's rise as an AI-driven enterprise can be credited to its partnership with OpenAI, the AI industry's leading force. Likewise, Nvidia's growth owes much to AI, as its GPUs are the preferred choice for many AI laboratories. Apple, on the flip side, attributes nearly half of its 2023 earnings to iPhone sales. But as competition with Huawei escalates in China and the appeal of older "voice assistant" technologies such as Siri diminishes, Apple’s growth trajectory could be held back in 2024. If this becomes a reality, and Apple trails its AI-focused rivals, it may need another revolutionary product to reclaim its top spot.
It's worth considering that Apple already enjoys a vast user-base already using iPhones. Gossips swarm the tech world that Apple is developing its own AI systems secretly, planning to transform Siri into something akin to ChatGPT. Apple's recent testing of ChatGPT and other AI systems with the latest iOS 17.4 beta only fuels these rumors. Apple, pundits suggest, may be comparing its own system ("Ajax") to these other AI models'. If Apple can bridge the gap between Siri's current state and the capabilities of GPT4, an "iPhone moment" could be in the offing.
So far, no company has found a 'killer' application or hardware suitable for an everyday consumer-level experience in the generative AI sphere. However, for the billion-plus iPhone users globally, their ideal AI-interface-device may already be in their possession.
Published At
1/29/2024 8:51:00 PM
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