Gene Munster: Apple stock likely to get a boost when ‘good enough’ generative AI arrives later this year

When Apple does finally throw its hat into the generative AI ring, Deepwater Asset Management’s Gene Munster doesn’t expect Apple’s product to be much better than the competition, but he does it expect it to be good enough to boost the stock.
Ian Krietzberg
 for TheStreet:
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Unlike its “Magnificent Seven” peers, Apple remained conspicuously quiet about any efforts it’s been making in the generative artificial intelligence space throughout 2023… And when Apple does finally throw its hat into the generative AI ring, Munster doesn’t expect Apple’s product to be much better than the competition.
Munster said that Apple’s position in terms of privacy will likely force the company to purchase third-party training data just like its competition… [W]ithout tapping into its own proprietary data, Apple will “be in the game,” but it won’t be the best.
But beyond the technical performance of the models is their usability. And Munster expects Apple to be on par with Google when it comes to the sheer number of people using their generative AI products. Enabling a generative AI Siri, Munster said, will give Apple a “huge advantage.”
“The average consumer doesn’t care that this is copying out to GPT-3.5 when GPT-4’s out. They care if can they hit a button and get what they want,” Munster said, likening his Apple AI expectations to the iPhone, which has “never been the best phone. It’s always been the phone that works best. I think that’s exactly what they’re going to do.”

MacDailyNews Take: We actually can’t remember the last time we used the “phone” (voice calling) portion of our iPhones.

Munster expects the stock to start getting credit from its coming push into AI sometime this year, likely in the wake of a potential June unveil.

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MacDailyNews Take: Generative AI. M3 Ultra. A Siri that doesn’t suck. This year’s WWDC is already sounding like a jam-packed blockbuster!
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