The AI chip stocks have come a long way since getting rocked in the first half of the year. But lately, all of the names have been blasting off past prior all-time highs. Some names, such as Apple (NASDAQ:AAPL), are down and seem poised to stay down for a rather lengthy period of time. Indeed, the iPhone maker isn’t necessarily what comes to mind when one thinks of an AI chip firm. However, with an impressive neural engine in its latest and greatest silicon, the company has a significant amount of AI hardware firepower up its sleeve.
Arguably, if the maker of Macs, iPhones, and iPads can get things right with AI software (think the LLM-powered Siri that simply cannot land soon enough), it may have what it takes to really feel more of that AI tailwind. So far this year, though, Apple stock hasn’t really felt the same wind at its back as most other firms in AI hardware and software have. Either way, I think Apple stands out as a fairly attractive catch-up trade for those looking for a relative bargain in the AI scene.
Apple stock is in a painful spot. But don’t discount its AI chip prowess.
At the time of this writing, shares of AAPL are still down 19% at a time when the mega-caps are either at new highs or are in the process of making a full recovery from the recent rut they found themselves in just a few short months ago. In any case, I think Apple stock stands out as a great buy as it readies its latest and greatest iPhones with chips that may very well better position itself to catch more of the AI tailwind.
While it’s unclear where Apple will go with Siri from here, I do think that the company will be fine under the lead of its legendary CEO, Tim Cook. Though a recent report suggested that Apple’s in-house AI model may still be a long way away, I do think that a deepening relationship with its partner and ChatGPT-maker OpenAI could be a potential catalyst as we enter the “new iPhone” season and go into 2026.
Of course, it’s easy to count Apple out of the game after its brief stumble by around 20% from peak to trough. Still, I wouldn’t count the company out as it looks to play things safely and steadily on AI, with a roadmap that may very well make more sense than that of its peers, many of whom may be moving a bit too fast.
Could Apple make a splash in the AI data centre?
Looking ahead, Apple could be ready to take AI data centres to the next level with a server chip codenamed Baltra. Indeed, there isn’t a great deal of info that’s known about this chip. Either way, it’d be a pretty big deal for the $3 trillion juggernaut if it were to make a massive splash in the data centre scene (likely exclusive for Apple users) alongside its mega-cap tech rivals.
Of course, the firm will need to spend a great deal, and it’s going to take some number of years before Apple becomes a force to be reckoned with in the data centre. Either way, I think Private Cloud Compute for Apple users could be yet another innovation that helps further widen the iPhone maker’s economic moat while adding to its long-term growth in services. Though there’s no guarantee that Baltra will be a hit for Apple, I do think it’s an underrated catalyst that beginning investors should ponder before ditching the stock due to a lack of upside momentum.
