AI Opportunities Unnoticed by the Market
Gene Munster, from Deepwater Asset Management, has identified two large AI opportunities that appear to be flying under the radar for many investors.
Missed Potential
On CNBC’s “Squawk Box,” Munster pointed out that Meta Platforms Inc and Apple Inc hold the most potential as underappreciated AI plays in the market.
Munster emphasized that these companies have the biggest upside potential relative to current expectations.
Meta’s Hidden Lever
He highlighted Meta’s use of AI for improving advertising campaigns and engagement, indicating a potential 50% growth for the company over the next two years.
However, Munster hinted at a significant yet underappreciated opportunity that could propel Meta into a new stratosphere.
Deepwater’s research on Meta’s open source large language model Llama suggests the potential for monetization. Most other similar models are closed off, opening a considerable opportunity for Meta.
Munster explained that if Meta successfully monetizes Llama, it would likely announce a foray into cloud infrastructure, putting it in direct competition with Amazon’s AWS, Microsoft’s Azure, and Google Cloud.
According to the tech analyst, Meta represents the “biggest AI opportunity that is misunderstood”.
Apple’s Unseen Potential
Apple, Munster indicated, is another underappreciated AI story. The iPhone maker is gearing up to release its own foundation model, expected to debut in June.
Munster countered the prevailing belief that Apple is dormant in AI, stating that the company is quite the opposite.
He expects Apple’s foundation model to focus on personalized AI and capture around 20% of the market, potentially charging approximately $10 per month for the service.
He concluded that “Llama and personalized AI with Apple” present the most significant yet untapped opportunities relative to current market sentiment.
At the time of publication, Meta shares were down 0.66% at $466.49 and Apple shares were down 0.73% at $188.02.
Photo: Joshua Woroniecki from Pixabay.