Apple Could Become Leader in Artificial Intelligence Hardware, Argues Morgan

Morgan Stanley (NYSE: MS ) analysts said in a note issued to clients on Friday that Apple (NASDAQ: AAPL ) is one of the companies that they see could benefit from the shift to intelligence.

artificial intelligence (AI), but “the impact on the P&L is still in its early stages”.

They believe the company is “well positioned to take advantage of the rise of AI workloads, thanks to the leadership of its A-series and M-series chips.”

“Apple has used its internal silicon development to optimize the integration of hardware, software and services, rolling out more powerful and efficient chips each year,” they wrote.

They explained that in 2017, Apple released the first generation Apple Neural Engine as part of the iPhone X’s A11 chipset, which helped run machine learning features on the device such as FaceID and Memoji.

Apple could become a leader in artificial intelligence (Source Google)

Analysts added that since then, “Apple has expanded the technology to the iPad/Mac and taken other steps forward, such as optimizing Stable Diffusion (the text-to-image model) to run the Apple Neural Engine, which allows users to generate content on the device faster”.

With that, Morgan Stanley argues that past investments “could uniquely position Apple as a hardware leader, as interest in AI grows and consumers run more AI-intensive apps on their smartphones.”

Reference source: investing.com