NEWSLETTER
During the past week, investors have focused highly on the technological sector for multiple reasons.
Multiple members of the magnificent 7 profits informed this week, including Apple (AAPL) Microsoft (MSFT) and goal platforms (GOAL) . A clear conclusion of the week of profits so far is that companies are not reducing their artificial intelligence spending (ai), even after the recent sale of the sale of the publication of the R1 ai model of the Chinese startup Deek.
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On the contrary, Microsoft and Meta are ready to increase their expenditure this year. However, in his profit call from the first quarter of 2025, Apple adopted a different approach, without revealing any specific figure for new ai investments in 2025, although the CEO Tim Cook made the plans to continue with INTEGRACIONES of ai.
Apple's story to spend less on ai has caused some concern of experts. However, a recent development could help take it to the front of the market.
Ia market conditions may be about to change in favor of Apple
As noted, Apple has approached the arms race of ai differently from its magnificent 7 companions. While other companies doubled in expensive nvidia chips (NVDA) Apple focused on creating its own internal chips, although it meant running the risk of being defeated to the fast -growing market.
While AAPL's actions have had a good performance in recent years, since the frenzy of ai has swept the markets, some experts have raised concerns about Apple's strategy.
As Barchart reported earlier this month, “analysts have raised questions about whether Apple's” intelligence “characteristics can boost the demand of their latest devices.”
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The departure stressed that Moffetnathanson recently degraded Apple, issuing a “sale” rating, citing “weak consumer response to the iPhone 16 enabled for the ai.” This thesis is backed by the fact that Apple I just informed A slight decrease of one year after year (interannual) in iPhone sales, which arrives below Wall Street estimates.
The integration of Apple's intelligence platform into iPhones may not be enough to keep Apple competitive in the ai arms race. But it seems that an unlikely source can be about to help Apple maintain the rhythm of its rivals of ai.
Apple also reported that the decrease in sales from China, but according to some experts, it may be ready to benefit from a market trend caused by a Chinese company. Deepseek recently surprised the world with its R1 model, trained for only $ 5.6 billion and built in the least advanced chips.
Experts agree that this development will force companies to find new creative ways to build ai technologies if they want to compete with this one -year startup. This seems likely to put Apple in a unique position to emerge as the leader of ai.
According to Financial Times:
“The Depseek model could point out a future in which sophisticated systems are small and efficient enough to operate with smartphones, instead of requiring large investments in cloud computing infrastructure.”
If that is true, Apple would probably have an advantage of competition, such as the main smartphone manufacturer in the market.
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Advanced mobile phones, such as the iPhone and Google Pixel (Googl) They are equipped with advanced processors that allow them to offer ai functions. However, the training of an advanced LLM generally requires the type of computational power that computer systems designed for these purposes can provide more easily.
Now, Deepseek's model could be about to mark a new era in which ai models are often run on smaller devices, such as smartphones and tablets.
Tim Cook has praised the Deepseek's models
Thomas Husson, a Main Forrester analyst, recently addressed the potential impact that Depseek could have on Apple, noting that “Deepseek's smallest model is more a validation of Apple's intelligence, since it will depend more on a local approach to ai on the device.
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He is not the only expert who predicts that these changing the markets of ai could benefit Apple. An analyst from Morgan Stanley issued a note on this topic recently, speculating that if the local approach in the Depseek device continues to spread, Apple will probably have a competitive advantage.
“In a world where consumption LLMs become commercial, distribution platforms become key assets, and Apple has the most valuable consumer technology distribution platform that exists today,” says the analyst.
Cook seems impressed by Depseek technology. In Apple's recent call, he described it as an “innovation that drives efficiency.” He added that he believes that the company will continue “taking advantage of a hybrid model” when it comes to capital expenses.
Now that Depseek seems to be ready to change the market, Cook probably sees even more reasons to use this approach off for the expenditure of ai.
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