A Wall Street analyst advises caution on Apple stock due to the company’s unclear artificial intelligence strategy, particularly in generative AI. Needham’s Laura Martin warns that Apple risks lagging behind Big Tech competitors if it doesn’t clarify its AI approach, potentially jeopardizing Tim Cook’s job.
Patrick Seitz for Investor’s Business Daily:
“Apple must articulate a GenAI action plan,” Martin said in a client note Friday. “Apple is 1-2 years behind its Big Tech competitors, so any GenAI plan will be expensive to catch up through higher costs to the P&L and higher capex, and maybe even an acquisition.”
Further, if it doesn’t act, tech talent will leave Apple to work for big players in artificial intelligence such as Meta Platforms, OpenAI, Anthropic and others, she said.
“We believe that Apple’s share price will fall once investors understand the investment levels required to catch up with the other Big Tech conglomerates that were early adopters of GenAI,” Martin said.
Lack of a clear AI strategy could even cost Chief Executive Tim Cook his job, she said.
“Press and Wall Street’s calls to replace Tim Cook as Apple CEO are getting louder every quarter that Apple doesn’t lay out a comprehensive GenAI strategy,” Martin said. “With Apple shares down 14% year to date (vs S&P 500 up 8%), it’s clear to us that investors are insisting that Apple get off the sidelines.”
MacDailyNews Take: Not loud enough, yet.
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Re: MDN’s comment… Bugger.
Apple won’t get serious about fixing itself until it can figure out how to do so by way of obnoxious leftwing virtue signaling.
Analysts always conveniently dish up anything they like to account for stocks going up or down. In this case the analyst conveniently ignores the effects on Apple stock of tariffs imposted by the tangerine tyrant.
If the haters want to get rid of Tim Cook the path forward is easy for them. Buy up a majority of Apple stock and vote him out.
Calls getting louder …. predictable. That is what whiners do. No facts required.
The guy that many here pushed as a candidate to lead Apple is currently presiding over an implosion in his company, with stock plummeting 21.7% so far this year, with no turnaround in sight. He’s also a known drug addict, philanderer, and had a major falling out with the POTUS. This beleaguered cyte has a worse track record than Steve Jobs in picking effective long term leaders.
The other guy some other out-of-touch people keep bringing up was an arrogant ass who, after bungling Maps and blaming others, finally got himself canned. No other tech firm hired him, and he’s been out of the industry for many years. Sorry but production of a play doesn’t quite impress on a resume for someone who wants to run a multinational corporation.
Who’s the “known drug addict, philanderer and faller-out?” It sure appears TC is the subject, but you’re bringing news with those nouns.
Let’s not forget; in addition to the “many here,” Jobs picked The Cyte (is that supposed to be derogatory?) and both figures have effectively been the leaders of the once richest co of the World. You don’t like Mr. Broadway either. Prescience and brilliance almost requires you make public who the next, best and inevitable leader is to be?
Who’s a whiner? I’m not a fan of The Cell either, btw.
I think he was referring to Musk, since before the anti-Cook campaign here , MDN spent ridiculous amount of time lionizing the dude. Not sure why anyone would follow that wacked so-called genius.
That “wicked so-called genius” is building rockets to Mars. Now tell us, Mr. Genius, have you done anything compared to that? Moron.
Musk, the man with conviction that many seem to dislike, IS a genius. To say otherwise and to besmirch him displays allegiance to a paradigm despite his achievements of excellence.
Space-craft, AI, motor vehicles, land boring/infrastructure, disability solutions, financial solutions, community media. Reported recently is his following the puck, with purchase of an energy company. AI and some crypto services will require energy needs way beyond current supply. What a dummy, he is.
Except for Boring (which I don’t understand as revolutionary), his pressing the boundaries in EVERY one of his business, but you’re disturbed by an entity “lionizing” him. I have a feeling you might be suffering from The Syndrome? Did your Musk antipathy coincide with his partnership with the Orange-Man Bad’s campaign and perhaps were tickled before with his clean-energy magic carpets?
Meanwhile carnage of AAPL’s forays into advance tech litters the horizon. BUT, Apple Pay remains and its capturing the the World.
It’s only a matter of time before he goes. However the question arises as to how much more damage he will cause to the company its innovation and product line. It’s not just Tim Cook who needs to be replaced.he’s populated the senior positions with those who seem to lack the vision for innovation and are content to keep on leveraging the revenue from an existing product range until it runs out Nokia Ericsson Motorola etc the difference is Steve jobs and Johny Ive gifted Cooke a range of products to play with so he can continue the game longer. It’s time to go now and he should show some respect for the customers and investors. Investors are fluid individuals and may be willing to extract as much value as long as the party lasts before moving on. Pity this company and brand has a long way to go with the rights leadership
As an add on maybe it’s time to invite Elon Musk on to the the board of apple get rid of the woke nonsense get back to basic innovation and brain storming and sideline the Oscar’s as this seems to be Tim Cookes main driver. Is it worthy of celebration the F1 is scoring well at the box office but apple intelligence and Siri are completely stalled?Just look at the headlines on Macdaily for the last month how many refer to movies and tv shows this website is not Variety it’s a site promoting a technology servicing company – many will say this is not what apple is but whatever Tim Cook has tried to create because of his distaste of innovators and lack of understanding it’s not a film and to business. Ti
Musk can’t even focus on his own company. No way that Apple’s core base would support him.
Nor can Tim Cook be a least Musk is innovative as a board member he’ll galvanise it or rallies it better than sinking out of inactivity intrangience and a complete lack of understanding of what’s needed
TIM COOK: “LIKE COLBERT SAID TO TRUMP…. GO FSCK YOURSELF!”
Why so angry! This is what’s wrong in the World now. If you are this angry about a forum disagreement the rest of you life must be miserable. It is clear that Apple needs new direction from a Product Guy not a Logistics Guy! There has been some innovation but not in the right places. Tim likes movies and TV shows not computers. That’s all folks!
macawesome88 and his 19 “friends”:
NYC’s “We’re With Colbert” rally for late-night host is a bust with just 20 protesters
“What a joke.”
https://nypost.com/2025/07/27/us-news/nycs-were-with-colbert-rally-for-late-night-host-is-bust/