July 3rd, 2024

Nvidia and Microsoft leap frogged Apple

Microsoft and Nvidia outpace Apple in market value through AI focus. Concerns on AI sustainability due to energy use. Investors demand real AI results, caution grows. Industry's success tied to energy efficiency and results delivery. Apple trails in AI competition.

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Nvidia and Microsoft leap frogged Apple

Microsoft and Nvidia have surpassed Apple in market value by focusing on AI development. Microsoft's investment in OpenAI and Nvidia's early push into AI chip development have paid off, propelling them to the top. However, concerns arise about the sustainability of the AI industry due to its energy consumption. The AI bubble faces challenges as investors become more discerning, demanding real results from AI companies. Despite the hype, some AI products have failed to meet expectations, leading to a more cautious approach in the market. The pressure is on for AI firms to deliver on their promises, with the risk of a burst if growth stalls. As the tech sector evolves, companies are intensifying their AI strategies, positioning AI as a central focus for future success. The industry's future success hinges on addressing energy consumption concerns and delivering tangible results to maintain investor confidence. Apple faces a tough challenge catching up with Microsoft and Nvidia in the ongoing AI race.

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By @taylodl - 5 months
Apple is wise to stay in their own lane. We'll see how well Apple Intelligence pans out: using AI to enhance personal productivity is what Apple needs to continue selling more Macs, iPads, iPhones, and Apple Watches. If they can somehow use their Apple Intelligence to enhance their Apple TV+ and Apple Music experiences, then that would be great too. The fact they're in a position to combine that intelligence gained about you across all those products and services is where the real game-changing opportunities lie.