Generative AI has evolved rapidly over the last few years. It is slowly making its way into consumer tech devices. Samsung, Google, and Microsoft have been at the forefront of this whereas Apple is lagging quite behind in this space. Now, noted analyst Ming-Chi Kuo has made a grim prediction of the Cupertino-based tech giant should their big plans of AI fail.  

Apple may lose heavily if it fails in AI space

Currently, Apple holds the title of the ‘most valuable company in the world’. However, things don’t seem to be well for the company. Apple registered double-digit decline in shipments in the first six weeks of 2024. A lot depends on the Cupertino-based tech giant’s plans in the AI space that has been under wraps. Past reports have already revealed that this year’s iPhone 16 series will not see any major upgrades in the hardware department. Instead, iOS 18 loaded with generative AI features and perhaps touted to be the biggest update in the history of iOS is said to be the key USP of the iPhone 16 series. 

Should Apple’s plans of AI fail or if they do not meet expectations, the Cupertino-based tech giant could lose out on the valuable company status to NVIDIA. This is as per analyst Ming-Chi Kuo. He adds that Apple was expected to ship between 220-225 million units this year but the prediction has now started to fall. The company could ship close to 200 million at the end of this year. 

As to who could pip Apple to the world’s most valuable company tag, it’s NVIDIA which is the undisputed leader in AI computing chips. A soaring demand for AI technology made it the third-largest company last month. NVIDIA’s stock has risen 260 percent in the last year with the market cap hitting $2.06 trillion whereas Apple gained only 13 percent with the market cap at $2.77 trillion. 

Apple CEO Tim Cook at an earnings call last month revealed that the company has big opportunity in the GenAI space. Although details remain scarce, everything is expected to be unveiled at WWDC keynote later in June this year. 

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