Are Artificial Intelligence Investors Overlooking Apple?
It’s easy to understand why artificial intelligence (AI) has been Wall Street’s new shiny toy in 2023, as the technology allows us to achieve digital feats that otherwise felt impossible.
And, of course, several big-tech players, including Microsoft MSFT and Alphabet GOOGL, have been scurrying to become the leader.
However, what if Apple AAPL could be another AI play hidden in plain sight? Let’s take a closer look at AI developments surrounding all three companies.
Apple
During the company’s most recent earnings call in early February, the topic of artificial intelligence came up. CEO Tim Cook undoubtedly has a positive view of the technology, claiming that AI will affect nearly all product and service offerings.
Interestingly enough, the legendary tech titan has already implemented the technology in several areas, including within the Apple Watch and the iPhone. Perhaps to the surprise of some, Apple’s Siri is powered by artificial intelligence.
So, while Apple may not be making flashy headlines surrounding the technology, it’s very much alive within the company.
The company posted worse-than-expected results, falling short of both earnings and revenue estimates in the face of a challenging business environment. It’s worth noting that the miss snapped a long streak of double beats.
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Microsoft
Microsoft gained widespread investor attention following announcements of a new AI-powered Bing search engine and Edge browser.
The new search engine and Edge browser are expected to deliver enhanced search results, complete answers, a new chat experience, and an overall much easier experience when exploring the web.
On top of AI exposure, MSFT shares provide a modest income stream; the company’s annual dividend presently yields 1.1%, with the tech titan boasting an impressive 10.3% five-year annualized growth rate.
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Alphabet
Alphabet recently unveiled its new conversational AI service, Bard, which is powered by its next-generation LaMDA (language model for dialogue applications).
Bard is expected to deliver high-quality responses drawn from the web, pairing the globe’s knowledge with the power of Alphabet’s LaMDA.
GOOGL shares have gotten cheaper following rough price action in 2022, with the company’s 17.6X current forward earnings multiple sitting well beneath the 26.1X five-year median and highs of 34.5X in 2021.
Image Source: Zacks Investment Research
Bottom Line
While the market continues to clamor about Microsoft’s MSFT and Alphabet’s GOOGL AI developments, Apple has seemingly flown under the radar.
It’s important to know that Apple AAPL has already thrown its hat in the artificial intelligence arena, as seen with the iPhone’s Siri and the Apple Watch.
With such a rich history, could Apple eventually become a leader in AI?
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