Apple Forges a Distinct Path in the AI Race Editor's Note: As a reminder, our InvestorPlace offices are closed today in honor of Juneteenth. If you need assistance from our Customer Service team, they’ll be happy to help when we reopen tomorrow.
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Apple is up nearly 10% since its Worldwide Developers Conference (WWDC) event last week as investors are getting excited about the tech giant's entrance into AI.
So, what steps is Apple taking exactly? And how might its moves impact the broader AI space?
Today, we turn to investing legend Eric Fry for the answers.
If anyone is keyed into AI and tech – and how to profit from it – it’s Eric. For example, a few weeks ago, his Speculator subscribers locked in 160% gains on their HP trade. About a week before that, it was a 115% gain on Corning. And in April, it was a 290% winner on IBM.
So, how is Eric sizing up Apple’s AI news and what it means for the tech space?
Let’s found out.
Have a wonderful Juneteenth,
Jeff Remsburg You can’t spell Apple Inc. (AAPL) without AI. At the company’s Worldwide Developers Conference (WWDC) event this week, the tech giant’s core announcement (pun intended) was its highly anticipated AI system, Apple Intelligence. The system, according to Apple, will build generative AI “into your iPhone, iPad, and Mac to help you write, express yourself, and get things done effortlessly.” Investors were ripe with excitement. Following the announcement, Apple surged on Wednesday to briefly become the world’s most valuable company, overtaking Microsoft Inc. (MSFT)… and did so again on Thursday (though MSFT is back to No. 1 as of this writing). The company is now what I like to call an AI distributor… and a major one at that. That said… though it has a homefield advantage in iPhones and other iOS devices, Apple Intelligence won’t likely be too disruptive to competitors like Gemini from Alphabet Inc. (GOOGL) or Meta AI from Meta Platforms Inc. (META). So, in today’s Smart Money, let’s bite into what Apple Intelligence has to offer. And I’ll share what Apple’s AI moves could mean for the rest of the tech sector… and what that means for your investments. Let’s jump in… Apple Intelligence Unveiled Apple Intelligence is bringing a world of change to Apple’s products. The most noticeable change will be an enhanced Siri experience. Apple promises its original voice assistant will feel more natural and responsive, addressing a long-standing challenge for the company. Siri will now exhibit more onscreen awareness. For example, when asked, it will present a user with a specific photo that they’re looking for – and even move it to third-party apps if desired. Siri can also more easily check real-time flight tracking data and determine the optimal time to get going. Additionally, the voice assistant will be more context-aware, capable of answering questions about various features and settings. Apple isn’t making these improvements alone. Through a partnership with OpenAI, users can now pose questions to ChatGPT through Siri, rather than relying solely on Apple’s own models. Apple is not paying OpenAI for the use of ChatGPT… but is providing Sam Altman’s company access to millions of new users. This is not Apple’s first AI partnership. One of the company’s earliest forays into AI was with Unity Software Inc. (U) to create apps for Vision Pro, the virtual reality headset that made its debut earlier this year. While not yet the usual Apple blockbuster success, Vision Pro introduced “spatial computing,” which uses artificial intelligence as a critical building block – and has applications far beyond the world of gaming. We’ll stay tuned to see if Apple can get consumers to buy their VR headset. Also in the future, Apple will likely partner with Google’s Gemini AI model, based on comments about support for additional AI models. Google has a strong foundation in AI, with a range of popular apps and services that provide a wealth of data to power its AI capabilities. So, this partnership could offer huge AI opportunities to both companies. What This Means for the Tech Sector Beyond Siri, Apple Intelligence also powers Apple Rewrite, a new writing tool that can improve a user’s writing, produce summaries, create outlines… and impact competitors. While Apple isn’t positioning itself in direct competition with major AI distributors like Microsoft, Alphabet, and Meta– yet –AI writing companies like Grammarly should be worried. With Apple’s service officially entering Grammarly’s territory, they may end up going head-to-head. Some factors still favor Grammarly, especially the fact that Rewrite is only available on iOS devices. But smaller AI players will undoubtedly face challenges in keeping up with the likes of Apple as they forge ahead in the AI race. Regards, | 
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