Apple Is Mostly Sitting Out the AI Spending Arms Race. With AI Stocks Selling Off, That Suddenly Looks Smart.
A brutal week for AI's biggest spenders is recasting the iPhone maker's restraint as a strength.
Apple Is Mostly Sitting Out the AI Spending Arms Race. With AI Stocks Selling Off, That Suddenly Looks Smart.
Overview
Some of the technology world's biggest spenders had a rough week. Oracle sank by a double-digit percentage after pairing record quarterly results with plans to raise tens of billions of dollars in additional financing for its artificial intelligence (AI) data center build-out. Chip stocks fell hard, too, as investors questioned when all of this spending starts paying for itself.
Some investors may think the best way to diversify away from these AI companies is to venture beyond tech. But I actually think one of tech's biggest names offers some good balance to stocks like this. I'm talking bout the $4.3 trillion iPhone-maker: Apple (NASDAQ: AAPL).
Details
Apple has been flagged by some investors in recent years as behind "behind" on AI as other tech giants spend far more to capitalize on opportunities in the AI era. But what if this is actually a strength?
Source
Originally published at www.fool.com.
