July 19, 2024

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Apple is a ‘sleeper AI play’: Strategist

Apple is a ‘sleeper AI play’: Strategist

Shares of Nvidia (NVDA) rise in extended hours trading after the chip giant beat first-quarter earnings estimates and announced a 10-for-1 stock split. Head of Public Enterprises and Chief Market Strategist Lou Basenese joins the trend question for earnings analysis and analyzes how long the company can… Maintain momentum.

Despite beating Wall Street expectations, Basenese highlights that the size of Nvidia’s beat is the smallest on record, at around 8%. “Expectations at some point will be far ahead of what Nvidia can offer, but that hasn’t happened yet,” he warns.

“I think it’s a leading candidate to be the next $3 trillion company, but if I had a dollar to work with today and I wanted to multiply it 10x, it’s not Nvidia. It’s probably on the smaller side of market cap,” he adds. GOOG, GOOGL) is the most “reasonable value” of the “Big Seven”.

Basenese calls the Nvidia stock split a “psychologically great move,” as buying a stock at a lower price is more enticing. He adds that it doesn’t change any of Nvidia’s core metrics or value calculations.

For investors looking to get into the AI ​​sector, Basenese highlights Microsoft’s (MSFT) ability to push AI products into the market to create demand. He also refers to Apple (AAPL) as a “sleeper AI play.”

“Apple is seen as having missed the boat… They were never first or second to market. They come in later, but then they go. They come in late, but they end up being the leader.” “They have two billion active devices in use,” he adds. “If they iterate and add a little AI somewhere, it will have a huge impact.”

For more expert insights and the latest market action, click here to watch this full episode of Ask the Trend.

This article was written by Melanie Riehl

Video version

We also announce a 10-for-1 forward stock split and dividend increases of 100 and 50%.

NVIDIA was all the market could talk about.

The company added more than $1 trillion to its valuation this year.

Thanks to the rise in its stock prices, it is now the third largest American company in terms of market value, which reaches $2.3 trillion.

This was an astonishing 100 and has raised expectations that some say may have gotten too aggressive here.

Joining me now with his thoughts on Lou Bassinet’s M DB Capital, President and Market Head Strauss Lou is always happy to see you.

It’s great to be here again.

So let’s get started with the video reports.

On this one, if we’re talking off camera, so it’s up 90% so far, right?

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In fact, everyone is on the same side of the boat.

90% of analysts told me I need to buy it.

It’s close to another 2.6% after hours.

What do you conclude from the report?

Give me yours, I’ll take that 10% of this.

I am eternally contradictory assessments.

It always kept me away from this.

But if you look at this report, I mean to host Wayne’s World with a party in Garth mode.

I mean, let’s go because there’s nothing bad about this report.

I think the risk if you have to find something is the size in which they outweigh the profits.

The forecast is the smallest ever, at around 8%.

If you look back a year ago when they reported the first quarter of the explosion that set off the AI ​​hype machine, it was about 40%.

So I think at some point the expectations are that it will be much ahead of what NVIDIA can offer, but that’s not the case yet.

So, you’re not there because of valuation concerns, and listen that when you have skeptics of the show, they’ll raise that.

What is it, is there a more comfortable level for you?

Look, I guess if I have to be rational, right?

Valuation was completely out of control until the company grew into it.

It is now worth 40 times forward earnings.

If you look at Microsoft and Apple, maybe in the late 30s, I think that makes sense for a company with a trillion-dollar market cap because you have to remember, right?

There is an opportunity cost.

How high can this market value reach?

I mean Apple hit three trillion last year.

This is already 2 trillion.

Do you think you’re moving to, you know, are you joining Microsoft in the $3 trillion club.

I mean, it could be a leading candidate to be the next $3 trillion company.

But if I have a dollar to put into work today and want a 10 output, it’s not an NVIDIA machine.


It will likely be on the smaller side of the market.

Or you’d be more conservative if you wanted to look at the seventh magazine.

I mean, it’s really the alphabet that’s the most reasonably evaluated on a prospective basis.

Can I get stock split news next to the bottom or top?

What do you take there?

I think it’s a great move psychologically because if you look at the data now, about 40% of trading volumes are from retail investors now in the last few months.

So this is a great way to bring more retail into the business psychologically.

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I mean it doesn’t change any of the underlying metrics and valuation calculations.

But if I was sitting there thinking about buying 100 stocks or shares, it would be a lot easier and more palatable at $100 versus $1,000, you know.

what do you think?

Also, I’m just interested to know what you think, not just what this report means for NVIDIA, per Jensen WW.

What are ripple effects?

Broader market implications?


I mean, I think, you know, as technology goes, so does the market, I mean, 40% of the S and P 500 gains were attributed to the technology sector.

If not more, if you look back historically, it’s similar to the .com days.

So we needed this, right?

I mean, this is the leader of the AI ​​trend, but we should have expected it too.

If you look, you’ve reported on Microsoft’s results, Amazon’s results at Google, and we’ve seen an acceleration in cloud revenue which means nvidia chips are being pulled into the market, right?

This is how it is facilitated.

So, okay.

So what you were on Silence and Video, you stepped in, and you had some concerns about maybe it’s too expensive but you want to get the AI ​​thing going, so where else are you going to look?

I think the most reasonable value is Microsoft.

I mean you have to do your own due diligence.

But the main difference with Microsoft is that they can push AI into the market, right?

They make products and can therefore create demand.

NVIDIA is being pulled into the market.

I think Apple is a sleeper.

this is funy.

So you’re Apple asleep because Apple is right.

We’ve already talked about that.

Little Apple is seen as having missed the boat, right?

Everyone either has the race going, has been left behind.

You don’t see it that way.

I’m not going to look at Tim Cook’s history, am I?

Everyone thought he would miss the boat after he came in to replace Apple-only Steve Jobs, and he continued the tradition.

They are never first or second in the market.

They come late, but then they go, they come late, but then they end up being the leader.

This is the main difference for Apple.

They have 2 billion active devices in use.

If they iterate and add a little AI somewhere.

It has an amplifying magnetic effect on the satisfied royal group.

And also, you know, I always think that with Apple, you know, Tim Cook, he controls, he controls the software, the hardware that ships, right?

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It’s that vertical integration.

When he decides he wants to make his move, he can quickly flip the switch.

So are you kind of looking forward to this software offering for Apple?

Is this the kind of motivator you are looking for?

Yes, I think this is a first step for Apple, but it’s just going to continually and permanently confuse people, right?

Apple is on a rollercoaster of emotions as people can’t believe they will pull a rabbit out of the hat and become a leader again.

Uh I think this is usually a good time to buy an Apple device.

Historically, you know, full disclosure, I own that.

Whether or not a company does investment banking.

But if you look now in the middle of the summer recession, getting closer to the holiday season has historically been a good time to time the market for Apple during the summer.

Well, anything else, so NVIDIA is very expensive, any of their chipset names.

You find, I really think ARM properties are coming back to market, and RE IP O as an attractive public company, it gives you leverage whatever the next direction for semiconductors is.

They’re branching out to A, and I’m pretty solid, they have a recurring revenue model that’s much more attractive than NVIDIA’s one-time sales model.

I think if you were to go would you, would you, obviously you’re also saying that you think the valuation is more attractive to you?

It’s a little advanced, but I think it will grow.

You will see it as if NVIDIA has improved its valuation.

I think the arm has the ability to do that.

It’s just a newly traded company again, right?

It has been taken off the market.

If you want to go, I like concrete AI applications.

So, that’s full disclosure.

We have distributed it.

I don’t own it, but the company does, it’s Heartbeam.

This is a portable credit card-sized device that can detect heart attacks and the latest data has shown that they can do it better than human cardiologists.

So, I’m most excited about small-cap names that are really innovative and practical applications of AI.

And I think that’s what’s really going to make the biggest gains because we’re going to see how AI really impacts saving our lives versus helping our kids, you know, save some grades by cheating in school.


I mean, this, not that, doesn’t have a long-term sustainable business behind it, but other apps always love having you around.

Strategy choices.

Thank you.

Thank you.