Latest news with #GeneMunster
Yahoo
2 hours ago
- Business
- Yahoo
Apple needs to show it can compete in the AI race at WWDC 2025
Apple (AAPL) will host its annual WWDC developers conference on June 9 at its headquarters in Cupertino, Calif., giving us a glimpse at the various software updates it has planned for the year ahead. While the company is sure to show off a variety of new features for its operating systems, Wall Street investors and analysts will be far more interested in how Apple is working to better compete in the AI space. So far, the company has failed to match the kind of AI capabilities offered by rivals like Google (GOOG, GOOGL), Microsoft (MSFT), and Samsung. And with its planned generative AI-powered Siri delayed until sometime later this year, things aren't looking so great for the iPhone maker. "The expectation is that this is going to be probably the most uneventful WWDC in three or four years, and part of that is because ... they don't have a ton to show," Deepwater Asset Management managing partner Gene Munster told Yahoo Finance. That could prove damaging for the tech giant as competitors continue to roll out new generative AI apps and services. To fend them off, Apple will have to start showing it has what it takes to be a true AI player at WWDC. Apple kicked off its AI push at WWDC 2024, revealing its Writing Tools, Genmoji, and image editing features. But the more powerful Siri was the centerpiece of the company's announcements. A revamped version of the voice assistant, the new Siri is supposed to be able to tap into your personal information and preferences to provide you with truly helpful responses to a wide range of queries. The most famous example Apple cited was asking Siri when someone's flight would land at the airport. The software would then be able to pull information about the flight from your email and check flight data to tell you when the plane would touch down. But that version of Siri is delayed for the foreseeable future. In March, Apple told Daring Fireball it expects to launch the upgraded Siri sometime this year, well later than originally anticipated. If Apple is going to put concerns about its AI expertise to bed, it'll need to prove that it's making progress on Siri — and provide a release date for the software. "Apple is digging itself out of a hole," Moor Insights & Strategy founder and chief analyst Patrick Moorhead told Yahoo Finance. "They got caught flat-footed with generative AI. I think they made a gallant effort at the last WWDC ... but they just did not deliver on it. And what delivering on it means is generative AI spread across devices and different services out there." It's not just about Siri, though. Apple will also need to show developers that it's giving them the tools necessary to help them develop AI apps for its platforms. "I think this is an important WWDC for Apple to show developers that they're serious about AI," Munster said. "I think they need to show that Apple is pushing some unique model approaches, and those could be small language models, or ... testing a larger language model too." According to Bloomberg's Mark Gurman, Apple will do just that, providing developers with access to the company's own large language models to create AI-powered apps The move could help software makers design new, exciting offerings that eventually drive sales of Apple Intelligence-compatible devices. Apple Intelligence is only available for the iPhone 15 Pro, the iPhone 16 line, and various iPads and Macs. Apple said the software is simply too resource-intensive for older iPhones to handle. While missing out on AI could seriously damage Apple's reputation, especially among younger consumers who have quickly taken to the technology, it won't happen overnight. "Even if they don't deliver something that is unique and or useful or in time, it's not going to immediately or very quickly impact the amount of people buying iPhones, because it's hard to shift, hard to change," Moorhead said. Apple, however, isn't just contending with the likes of Samsung and Google anymore. The company also has to deal with new and emerging competitors like OpenAI ( and Jony Ive's upcoming AI-based consumer product. While we haven't seen the device yet, the inclusion of Ive, who helped lead Apple's design team for years and ushered in the age of the iPhone, means OpenAI's offering could prove to be a formidable threat. If Apple is going to withstand the tumult ahead, it'll need to start at WWDC next week. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley.
Yahoo
2 hours ago
- Business
- Yahoo
Apple needs to show it can compete in the AI race at WWDC 2025
Apple (AAPL) will host its annual WWDC developers conference on June 9 at its headquarters in Cupertino, Calif., giving us a glimpse at the various software updates it has planned for the year ahead. While the company is sure to show off a variety of new features for its operating systems, Wall Street investors and analysts will be far more interested in how Apple is working to better compete in the AI space. So far, the company has failed to match the kind of AI capabilities offered by rivals like Google (GOOG, GOOGL), Microsoft (MSFT), and Samsung. And with its planned generative AI-powered Siri delayed until sometime later this year, things aren't looking so great for the iPhone maker. "The expectation is that this is going to be probably the most uneventful WWDC in three or four years, and part of that is because ... they don't have a ton to show," Deepwater Asset Management managing partner Gene Munster told Yahoo Finance. That could prove damaging for the tech giant as competitors continue to roll out new generative AI apps and services. To fend them off, Apple will have to start showing it has what it takes to be a true AI player at WWDC. Apple kicked off its AI push at WWDC 2024, revealing its Writing Tools, Genmoji, and image editing features. But the more powerful Siri was the centerpiece of the company's announcements. A revamped version of the voice assistant, the new Siri is supposed to be able to tap into your personal information and preferences to provide you with truly helpful responses to a wide range of queries. The most famous example Apple cited was asking Siri when someone's flight would land at the airport. The software would then be able to pull information about the flight from your email and check flight data to tell you when the plane would touch down. But that version of Siri is delayed for the foreseeable future. In March, Apple told Daring Fireball it expects to launch the upgraded Siri sometime this year, well later than originally anticipated. If Apple is going to put concerns about its AI expertise to bed, it'll need to prove that it's making progress on Siri — and provide a release date for the software. "Apple is digging itself out of a hole," Moor Insights & Strategy founder and chief analyst Patrick Moorhead told Yahoo Finance. "They got caught flat-footed with generative AI. I think they made a gallant effort at the last WWDC ... but they just did not deliver on it. And what delivering on it means is generative AI spread across devices and different services out there." It's not just about Siri, though. Apple will also need to show developers that it's giving them the tools necessary to help them develop AI apps for its platforms. "I think this is an important WWDC for Apple to show developers that they're serious about AI," Munster said. "I think they need to show that Apple is pushing some unique model approaches, and those could be small language models, or ... testing a larger language model too." According to Bloomberg's Mark Gurman, Apple will do just that, providing developers with access to the company's own large language models to create AI-powered apps The move could help software makers design new, exciting offerings that eventually drive sales of Apple Intelligence-compatible devices. Apple Intelligence is only available for the iPhone 15 Pro, the iPhone 16 line, and various iPads and Macs. Apple said the software is simply too resource-intensive for older iPhones to handle. While missing out on AI could seriously damage Apple's reputation, especially among younger consumers who have quickly taken to the technology, it won't happen overnight. "Even if they don't deliver something that is unique and or useful or in time, it's not going to immediately or very quickly impact the amount of people buying iPhones, because it's hard to shift, hard to change," Moorhead said. Apple, however, isn't just contending with the likes of Samsung and Google anymore. The company also has to deal with new and emerging competitors like OpenAI ( and Jony Ive's upcoming AI-based consumer product. While we haven't seen the device yet, the inclusion of Ive, who helped lead Apple's design team for years and ushered in the age of the iPhone, means OpenAI's offering could prove to be a formidable threat. If Apple is going to withstand the tumult ahead, it'll need to start at WWDC next week. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley.
Yahoo
6 days ago
- Business
- Yahoo
Wall Street is looking past Nvidia's China problem… for now
Wall Street is brushing aside Nvidia's (NVDA) China worries, pointing to the company's strong sales growth in the rest of the world following its fiscal first quarter earnings on Wednesday. Nvidia stock jumped more than 5% in early trading Thursday. Nvidia reported better-than-anticipated revenue of $44.1 billion in Q1, up 69% year over year, but fell short on adjusted earnings per share, which topped out at $0.81. Wall Street was anticipating adj. EPS of $0.93. Data Center revenue was also light, coming in at $39.1 billion versus expectations of $39.2 billion. Normally, that kind of report would send Wall Street into a panic, but investors shrugged off the misses, which Nvidia attributed to the $4.5 billion charge it took on H20 chips the Trump administration banned it from selling to China in April. That's because, putting the H20 charge aside, Nvidia would have pushed well past earnings expectations. And while the company said it would take an $8 billion hit in lost sales due to the H20 ban in Q2, analysts are upbeat about Nvidia's outlook. 'Nvidia's business, excluding China, is booming,' Deepwater Asset Management managing partner Gene Munster wrote in a note following Nvidia's earnings announcement. 'For the July quarter, they effectively raised guidance for everything except China by 10%. Today's July guidance was for $45 billion. Adding back the $8 billion impact of the curbs gets us to $53 billion,' Munster wrote. 'The bottom line: These revisions are evidence that we are still early in the AI buildout.' Nvidia notified investors on April 15 that the US government ordered it to stop selling its H20 chips into China. The company built its H20 processor specifically for the Chinese market to comply with controls banning the sale of a more powerful chip to the region. During Nvidia's earnings call on Wednesday, CEO Jensen Huang said the company would no longer be able to continue modifying its prior-generation Hopper chips, which it used to build the H20, to produce less powerful offerings for China. But William Blair analyst Sebastien Naji wrote in an investor note that even if Nvidia is locked out of China, it will continue to benefit from further growth elsewhere. 'While tight US export controls essentially withdraw Nvidia from a $50 billion China [total addressable market] for AI, we see ample room for Nvidia to maintain its industry-leading growth over a multiyear period addressing the much broader non-China AI opportunity across hyperscalers, enterprises, and increasingly sovereigns,' he wrote. Sovereigns, or sovereign AI platforms, are AI services built and sometimes run by individual governments. And Nvidia appears ready to reap the benefits of sovereign AI buildouts, with Huang joining President Trump during his recent trip to the Middle East where Trump announced a deal that will see Nvidia provide hundreds of thousands of AI chips to Saudi Arabia and the United Arab Emirates (UAE) to power their own AI data centers. Despite Wall Street's general approval of Nvidia's results and outlook without China, Huang isn't giving up on the region. The CEO issued a dire warning during the company's earnings call, saying that whatever chip AI platform wins in China is positioned to lead globally. 'China is one of the world's largest AI markets and a springboard to AI success,' Huang said, adding that China's AI will move on with or without US-made chips like Nvidia's. According to Reuters, Nvidia is working on a new AI chip based on the company's Blackwell architecture that will meet the Trump administration's export controls. But it will need to ensure it can get that product on the market soon if it hopes to regain its lost market share in the country. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Wall Street is looking past Nvidia's China problem … for now
Wall Street is brushing aside Nvidia's (NVDA) China worries, pointing to the company's strong sales growth in the rest of the world following its fiscal first quarter earnings on Wednesday. Nvidia stock jumped more than 5% in early trading Thursday. Nvidia reported better-than-anticipated revenue of $44.1 billion in Q1, up 69% year over year, but fell short on adjusted earnings per share, which topped out at $0.81. Wall Street was anticipating adj. EPS of $0.93. Data Center revenue was also light, coming in at $39.1 billion versus expectations of $39.2 billion. Normally, that kind of report would send Wall Street into a panic, but investors shrugged off the misses, which Nvidia attributed to the $4.5 billion charge it took on H20 chips the Trump administration banned it from selling to China in April. That's because, putting the H20 charge aside, Nvidia would have pushed well past earnings expectations. And while the company said it would take an $8 billion hit in lost sales due to the H20 ban in Q2, analysts are upbeat about Nvidia's outlook. 'Nvidia's business, excluding China, is booming,' Deepwater Asset Management managing partner Gene Munster wrote in a note following Nvidia's earnings announcement. 'For the July quarter, they effectively raised guidance for everything except China by 10%. Today's July guidance was for $45 billion. Adding back the $8 billion impact of the curbs gets us to $53 billion,' Munster wrote. 'The bottom line: These revisions are evidence that we are still early in the AI buildout.' Nvidia notified investors on April 15 that the US government ordered it to stop selling its H20 chips into China. The company built its H20 processor specifically for the Chinese market to comply with controls banning the sale of a more powerful chip to the region. During Nvidia's earnings call on Wednesday, CEO Jensen Huang said the company would no longer be able to continue modifying its prior-generation Hopper chips, which it used to build the H20, to produce less powerful offerings for China. But William Blair analyst Sebastien Naji wrote in an investor note that even if Nvidia is locked out of China, it will continue to benefit from further growth elsewhere. 'While tight US export controls essentially withdraw Nvidia from a $50 billion China [total addressable market] for AI, we see ample room for Nvidia to maintain its industry-leading growth over a multiyear period addressing the much broader non-China AI opportunity across hyperscalers, enterprises, and increasingly sovereigns,' he wrote. Sovereigns, or sovereign AI platforms, are AI services built and sometimes run by individual governments. And Nvidia appears ready to reap the benefits of sovereign AI buildouts, with Huang joining President Trump during his recent trip to the Middle East where Trump announced a deal that will see Nvidia provide hundreds of thousands of AI chips to Saudi Arabia and the United Arab Emirates (UAE) to power their own AI data centers. Despite Wall Street's general approval of Nvidia's results and outlook without China, Huang isn't giving up on the region. The CEO issued a dire warning during the company's earnings call, saying that whatever chip AI platform wins in China is positioned to lead globally. 'China is one of the world's largest AI markets and a springboard to AI success,' Huang said, adding that China's AI will move on with or without US-made chips like Nvidia's. According to Reuters, Nvidia is working on a new AI chip based on the company's Blackwell architecture that will meet the Trump administration's export controls. But it will need to ensure it can get that product on the market soon if it hopes to regain its lost market share in the country. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley.
CNBC
27-05-2025
- Business
- CNBC
The next 1-3 months will be a transition period for Apple investors, says Deepwater's Gene Munster
Gene Munster, Deepwater Asset Management managing partner, joins 'Squawk Box' to discuss the uncertainty facing Apple, President Trump's 25% iPhone tariff threat, the pressure facing CEO Tim Cook, the company's AI investment, and more.
