Renowned investor Steve Eisman, famous for his role in ‘The Big Short,’ has identified Apple Inc. as a major player in the artificial intelligence (AI) market. Eisman, now a senior portfolio manager at Neuberger Berman, expressed his views on Apple’s AI potential during a recent CNBC ‘Fast Money’ segment.
He believes that Apple is the ‘hidden AI play,’ emphasizing the company’s AI strategy as a key factor that could drive significant growth. Eisman’s insights come just before NVIDIA Corp’s fiscal first-quarter results were due, where he sees Apple as a major beneficiary of the AI boom.
While Nvidia, Advanced Micro Devices (AMD), and cloud companies are often discussed as prime AI investment opportunities, Eisman suggests that Apple, somewhat overlooked in AI conversations, could potentially be the biggest beneficiary once AI-driven apps become mainstream.
He envisions a scenario where Apple’s entire product line, including iPhones, iPads, and laptops, undergoes a significant refresh with the availability of AI-driven apps, leading to a surge in demand for Apple devices. Eisman stresses the importance of patience, acknowledging that the development of AI-driven apps will take time, but anticipates a substantial refresh cycle once they are widely available.
Analysts have also been focusing on Apple’s AI strategy, highlighting the potential for AI advancements to attract higher institutional ownership of Apple’s iPhone, potentially offering a 23.5% upside. As discussions around Apple’s AI initiatives continue, the company’s position in the AI market and its future growth prospects remain subjects of interest and speculation.
