Apple Risks Getting Overtaken by Bigger AI Players, Needham Says
- Microsoft, Alphabet, and Amazon could surpass Apple in size
- Apple shares have recently slumped on concerns over China
This article is for subscribers only.
Apple Inc. is by far the world’s largest company, but the trend toward artificial intelligence is poised to upend the power rankings on Wall Street, according to Needham.
The iPhone maker lacks a strategy on generative AI and large language models (LLMs) — which powers services like ChatGPT — putting its title at risk, analyst Laura Martin wrote in a Thursday note. AI growth could result in Apple getting overtaken by three other megacaps: Microsoft Corp, Alphabet Inc., and Amazon.com Inc., all of which Martin sees as more established players in the fast-growing arena.