Hidden Gem
Renowned investor Gene Munster of Deepwater Asset Management has astutely pointed to two magnificent AI opportunities that the market appears to be overlooking.
Underappreciated Potential
Meta Platforms Inc META and Apple Inc AAPL have been identified as two of the most underappreciated AI plays in the market by Munster. He suggested that their upside potential far exceeds current expectations.
Meta’s Monetization Potential
Munster highlighted Meta’s use of AI to enhance advertising campaigns and engagement, projecting a potential 50% growth in the next two years. However, he stressed that there is a significant underappreciated lever that could elevate Meta into a ‘whole different atmosphere’.
The “Llama” Advantage
According to Deepwater’s research, Meta’s open source large language model, Llama, presents an untapped monetization opportunity. Munster explained that unlike most other LLMs, which are closed off, Meta’s Llama allows for a substantial financial opportunity.
Cloud Infrastructure Potential
Should Meta decide to monetize Llama, Munster speculated that the company would likely announce a foray into cloud infrastructure, sharpening its competition with Amazon’s AWS, Microsoft’s Azure, and Google Cloud.
The Unseen Apple
Munster also touted Apple’s undercover AI story. He revealed that the tech giant is poised to launch its own foundation model, earmarked for a June release, targeting personalized AI, and potentially capturing 20% of the market.
Hidden Power of Personalized AI
Munster emphasized that despite common misconceptions, Apple is far from “asleep at the wheel of AI.” The foundation model could unlock significant potential as it focuses on personalized AI, a market where Munster estimated Apple could charge about $10 per month for the service.
A Bold Outlook
In a bold assertion, Munster encouraged investors to set their sights on the previously uncharted territories. He identified Llama at Meta and personalized AI with Apple as the two biggest opportunities that the market is currently overlooking.
Market Action
At the time of publication, Meta shares were down 0.66% at $466.49, and Apple shares were down 0.73% at $188.02.
Image Source
Photo: Joshua Woroniecki from Pixabay.
