Artificial Intelligence Under Scrutiny: The Role of Apple and Others in Global Competition

The latest trends in AI stocks reflect an optimistic outlook on the future of AI technology. Companies like NVIDIA continue to dominate this market, with the stock price of the chip manufacturer, known for selling AI GPUs, having significantly increased over the past two years. After the NVIDIA stock tripled in 2023, it rose by another 140% in 2024, pushing the company's market valuation close to 3 trillion dollars. Analysts, such as those from Bank of America, have raised their price target to around 1,500 dollars, emphasizing NVIDIA's potential to drive AI growth for years to come. The transition of global data centers to AI-accelerated computing could require up to 500 billion dollars annually, positioning NVIDIA as a central player in this transformation. Leading investment firms are recognizing the significance of emerging AI trends. According to a report by the Financial Times, investment giant BlackRock is exploring the launch of an AI-focused fund in partnership with technology giant Microsoft and the Abu Dhabi-based investment firm MGX. The primary objectives of this fund are to create data centers and finance energy infrastructure to support AI growth. NVIDIA is assisting BlackRock in estimating the energy consumption of new AI technologies, with analysts predicting that energy shortages could pose a potential obstacle to faster AI adoption. BlackRock will establish the fund along with Global Infrastructure Partners, a company that was bought back for 12.5 billion dollars in early January. The AI hype is truly global. Technology giant Amazon recently announced plans to invest 8 billion pounds in the UK over the next five years to expand the data center infrastructure across the country. Amazon's rivals Google and Microsoft have also announced plans to strengthen data center infrastructure in the UK. Google plans to invest 1 billion dollars, while Microsoft has confirmed approximately 2.5 billion pounds to promote AI growth. Experts emphasize that AI is not a short-term trend but a long-term transformative force. Francisco Bido, a leading portfolio manager, recently highlighted that AI is not a passing phenomenon and has a significant impact on both revenue and profit figures for many companies. Apple Inc. also aims to benefit from the growing interest in AI by launching the latest iPhone models with AI features. However, pre-orders for the new phones have declined compared to the previous year, while Chinese companies are offering the new models at lower prices due to weak demand. The Apple Intelligence Suite, a collection of AI features, will be available later this year on new devices in English, with support for other languages next year. Ultimately, Apple Inc. ranks second on our list of trending AI stocks in terms of investment potential. Nevertheless, we believe some AI stocks offer greater promise, providing higher returns within a shorter timeframe. Those in search of a more promising AI stock trading at less than five times its earnings should consult our report on the most affordable AI stocks.