Apple catches up with the AI ​​revolution: Dan Ives

As big tech companies reported earnings, they also revealed a massive wave of planned spending on AI projects and infrastructure. Some companies like Alphabet (GOOG, GOOGL), Meta (META), and Microsoft (MSFT) have pulled ahead, while others, like Apple (AAPL), have faced growing challenges.

Wedbush Securities Managing Director Dan Ives joins The Morning Brief to discuss what he calls “the fourth industrial revolution” in AI and Apple’s advances on the front.

Ives says Apple’s annual Worldwide Developers Conference will be pivotal for Apple: “I think it’s probably the most important event for Apple that we’ve seen potentially in a decade, because it’s going to be (CEO Tim) Cook who will outline the AI ​​strategy. On the developer services side, I think this is really the beginning of an AI app store in terms of its evolution and then its proprietary AI technology in the iPhone 16, which will be launched in September. »

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This message was written by Nicolas Jacobino

Video transcription

AI has been the center of attention this week as investors digest a slew of results from companies such as Taiwan Semiconductor and Sound Hound A I.

The picture is mixed, especially when it comes to orientation.

But our next guest said there’s a tidal wave going on, but some key names are going to benefit from finding out more.

We want to bring Dan I in.

Well, Bush Securities, Senior Equity Analyst, Dan, it’s great to see you.

So tell me about this note that you just published this morning.

The headline almost says that the entire AI revolution spending tidal wave is well underway, as the first quarter results showed.

So what does this signal about the performance of some of these upcoming names?

Look, I think this shows that this demonization revolution is starting and it’s not just about the godfather of AI Jensen NVIDIA and what Nadel is doing in Redmond, it’s now about the rest of the technology.

I think names like service now, Salesforce Oracle, you could arm stakes.

I mean, even though those are just robust numbers, you see that trickle down into other areas.

Hammer here.

Hunting dog.

And what and what I believe will be the rest of the software and semi-finals.

I think this fourth industrial revolution has begun.

How can investors best determine a healthy amount of spending on generative AI ambitions versus what seems unhealthy or perhaps an index capital allocation?

Well, if you look at these hyperscale players, Microsoft Amazon Google, and then you, you analyze some of the spending that we’re seeing at Meta and others.

The story continues

It has only just begun.

I mean, we’re not even in the first inning, I’d say we’re in the dugout to find out where this is all going.

Now, in terms of overindexing, I think you have to own the right coins.

I think you have to do it, you have to have your games in the semi-final software and infrastructure.

And I think there’s almost a basket approach to this.

But even so, if someone told you six months ago, Dell would be an AI game.

You’d say, OK, you must be having a great Friday night, but look what’s happening.

Look at the work of Dell and others.

It’s 1995, not 1999.

Dan, one of the names that we’ve talked about a lot when it comes to an I, at least, more recently, not so much here in the last few months, but more recently Apple has been asking about its strategy when it comes to AI. Looks like we’re supposed to hear a little more at the big event next month.

But I’m curious about your perspective: what do you think you’re hearing from a kitchen company in terms of strategy?

Look, I think this is probably the most important event for Apple that we’ve seen potentially in a decade, because it’s going to help set the AI ​​strategy on the developer services side.

What I believe is really the beginning of an AI app store in terms of transformation, and then it’s the iPhone 16 proprietary AI technology that was launched in September.

It was behind the scenes.

Were they behind in AI?

Yes, but I think they caught up quickly and you have the best 2.2 billion based facility in the world.

So this is the beginning of AI coming to Cupertino, does this compactor add importance to Dan.

But for starters, Apple actually apologizing is almost as rare.

But I think it also shows that they are being scrutinized under a microscope, with the Brussels ring road target on their backs.

But when you make the best products in the world and you’re in the spotlight, that’s what they’ll do.

And an ad like this, I want to, I want to expect to do more, but Apple is apologizing for the best products in the world and, and that’s basically what they’re doing.