The “Magnificent Seven” have been the driving force behind the current bull market. If there’s one trend that’s been pushing the stock prices of big tech companies higher, it’s artificial intelligence (AI).
Practically every member of the Magnificent Seven has a deep connection with the current push to advance AI:
Nvidia is the leading GPU chip designer, supplying growing data centers designed to train large language models.
Microsoft, Amazon, and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are leading public cloud providers, providing access to foundational models for developers to create new AI-powered apps. All three have big investments in their own large language models and chip designs as well.
Meta Platforms is developing a leading large language model, LLaMA, spending billions on data centers to train and implement its AI across its apps.
Tesla is racing toward a robotaxi service powered by its massive investments in AI.
Just one member of the seven has been exceptionally quiet about its AI: Apple (NASDAQ: AAPL). The iPhone maker typically doesn’t like to talk about what it’s working on until it’s ready for release. But that could change this summer.
Several analysts believe Apple will make several big AI-related announcements this year. And one analyst expects AI-related products and services will push its stock price to $225, about 33% higher than the price as of this writing.
Image source: Getty Images.
The summer of Apple AI
Bank of America analyst Wamsi Mohan sees the recent pullback in Apple shares as a great buying opportunity ahead of the company’s typical event schedule, which is set for this summer.
He sees Apple making a series of AI-related announcements at its annual Worldwide Developer Conference in June. During the company’s annual shareholder meeting, CEO Tim Cook promised investors that Apple will “break new ground” on generative AI this year. So the stage is set for Cook to unveil some big products and services.
Nobody knows what Apple could announce. While management has said it’s spending a lot of time and money on generative AI, it hasn’t provided…
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