In today’s world, knowledge is as valuable as gold, and generative AI uses this wealth to forge inventions that were once unimaginable.
With the emergence of generative AI, giants like Apple Inc (NASDAQ:AAPL) could be eclipsed as new entrants harness the power of giant language models (LMPs) to redefine industries, Needham said Thursday.
Here’s what you want to know.
AAPL analyst: Needham analyst Laura Martin reiterated an Apple buy note with a $195 price target.
“In our view, many of them (including AAPL) are about to be eclipsed by generative AI,” Martin said in a note to investors.
Economic systems will play a central role in shaping the AI adoption trajectory, the Needham analyst said. In convinced capitalist environments, laggards in adopting generative AI may be marginalized within a few years, he added.
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The media domain and the web is poised to be redesigned, thanks to generative AI. While it’s still early days to identify potential underperforming companies, the entities that control LLMs appear to be transparent precursors, Martin noted.
But gaining insights for LLMs leads to higher costs, the analyst said, hinting that long-term LLMs may simply command higher prices.
Much of the strength of generative AI is rooted in the quality and contextuality of knowledge within LLM, underscoring the role of knowledge in driving AI capabilities, from the birth of next-generation products to mainstream cuts.
Apple’s narrative here has nuances: Even if it remains on the sidelines of the rise of generative AI, its fortress-like ecosystem can simply serve as a bulwark against major setbacks. However, Needham’s focus is on Android, bolstered by Google’s arsenal encompassing cloud computing, generative AI and a wealth of first-hand knowledge about global consumers are poised to eclipse Apple in the race.
The analyst said that, when betting on potential newcomers, hedge against sure winners: technology arsenal providers including Amazon’s AWS, Microsoft’s OpenAI and Google Cloud.
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