We recently compiled a list of the 15 AI News investors can’t miss. In this article we will look at where Apple Inc. (NASDAQ:AAPL) ranks among the other AI news investors shouldn’t miss.
According to Ark Invest, an investment manager focused on disruptive technologies, breakthroughs in artificial intelligence are expected to increase the share of the global stock market associated with disruptive innovation from 16% to 60% by 2030. As inflation turns to deflation in several sectors, the Firm believes that five innovation platforms, namely robotics, energy storage, AI, blockchain and multi-OMIC (biological analysis) sequencing, will have a profound impact on macroeconomic metrics in the coming years.
“Interest rates are likely to surprise at the low end of expectations, broadening the equity rally from a narrow subset of stocks and reinforcing the need for diversified AI investments.” -Catherine Wood, CEO and CIO
Learn more about these developments by accessing the top 30 AI stocks according to BlackRock and Beyond the Tech Giants: 35 Non-Technical AI Opportunities.
One of the company’s ETFs with an investment theme of next-generation internet outperformed broad global stock indices in the third quarter, benefiting from its positions in companies involved in innovative technologies. The fund’s year-to-date performance is 16.81%, outperforming its category by 1.59 percentage points this year.
In light of this trend, technology reporter Kate Rooney, affiliated with CNBC’s “The Exchange,” revealed how Wall Street is trying to cash in on the AI craze by using AI itself. According to Rooney, the new world of generative AI is starting an “arms race for hedge funds.” Modern versions of AI today are better than human traders in more ways than one. They learn from mistakes and get smarter as they go, ultimately requiring minimal human intervention. Combining this with the rise of OpenAI and Anthropic, these ‘off-the-shelf’ models are usually cheaper.
Furthermore, although human traders are capable, they often succumb to emotions and tend to make mistakes. This is why Intelligent Alpha CEO Doug Clinton believes a “lack of emotion” is actually AI’s edge or “superpower.” That said, the program revealed how hedge funds are now exploring AI to “stay ahead of the markets,” with their use of AI ultimately helping them improve decision-making on the ground. Companies like OpenAI and Anthropic, which have raised significant capital over time, ultimately need enterprise customers to scale, and Wall Street is an ideal fit because of its reliance on data and analytics.
Intelligent Alpha has launched a unique ETF named after famed stock trader Jesse Livermore. The ETF uses OpenAI’s ChatGPT, Anthropic’s Claude and Google’s Gemini to build a global stock portfolio. According to Clinton, companies that start working with AI could gain an advantage with a price tag of millions of dollars.
“What it does is it adds some intelligence to indexes, which by definition are a kind of set of rules that can’t be smart. And they also take that emotion out of the active side where people are still making decisions, but we’re getting caught up. You know, we make mistakes and sometimes they compound. And so I think AI, by solving these two problems, has the potential to really capture a lot of value in terms of assets flowing into these new AI-powered funds.” – Intelligent Alpha CEO
Learn more about these developments by accessing 10 Unsexy AI Stocks According to Goldman Sachs and 10 Buzzing AI Stocks According to Goldman Sachs.
Methodology
For this article, we selected AI stocks by combining news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research shows that we can outperform the market by imitating the best stock picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (see more details here).
Apple Inc. (NASDAQ:AAPL)
Number of hedge fund holders: 184
Apple Inc. (NASDAQ:AAPL) is an American multinational technology company engaged in the design, manufacturing and marketing of smartphones, tablets, PCs, wearables and accessories worldwide. The company uses artificial intelligence in various ways. With Apple’s launch of Siri, it became the first widely used assistant with AI and natural language processing (NLP).
Apple Inc. (NASDAQ:AAPL) this month launched its flagship product, Apple Intelligence, a suite of software tools that bring artificial intelligence to its devices. Instead, on October 15, it introduced its new iPad mini, equipped with the A17 Pro chip and Apple Intelligence. According to Apple’s press release, the A17 Pro features a faster CPU and GPU, a 2x faster Neural Engine than the previous generation iPad mini, and support for Apple Intelligence.
“There’s no other device in the world like iPad mini, loved for its combination of powerful performance and versatility in our most ultraportable design. Appealing to a wide range of users, iPad mini is built for Apple Intelligence, delivering intelligent new features that are powerful, personal and private. With the powerful A17 Pro chip, faster connectivity and support for Apple Pencil Pro, the new iPad mini delivers the full iPad experience in our most portable design at an incredible price.” -Bob Borchers, Apple’s vice president of Worldwide Product Marketing.
On Monday, October 7, Jefferies downgraded the company’s stock from Buy to Hold, stating that expectations for sales of the new AI-enabled iPhones are too high and that it will take some time before smartphone technology truly supports AI.
In short, AAPL is in 2nd place on our list of AI news investors shouldn’t miss. While we recognize AAPL’s potential as an investment, our belief lies in the belief that some AI stocks hold greater promise for delivering higher returns in a shorter time frame. If you’re looking for an AI stock that’s more promising than AAPL but trades at less than five times earnings, check out our report on the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now And The 30 most important AI stocks according to BlackRock.
Disclosure: None. This article was originally published on Insider Monkey.
