--- title: "Gene Munster Predicts Apple AI $33B A Year Opportunity, Draws Comparisons To This Stock From 2022" description: "Deepwater Asset Management managing partner Gene Munster predicts that Apple's AI model could generate $33 billion in annual revenue for the company. Despite Tim Cook's mention of AI during Apple's sh" type: "news" locale: "en" url: "https://longbridge.com/en/news/109252024.md" published_at: "2024-03-05T11:22:07.000Z" --- # Gene Munster Predicts Apple AI $33B A Year Opportunity, Draws Comparisons To This Stock From 2022 > Deepwater Asset Management managing partner Gene Munster predicts that Apple's AI model could generate $33 billion in annual revenue for the company. Despite Tim Cook's mention of AI during Apple's shareholder meeting, the company's stock has declined by over 5% this year. Munster believes that Apple's AI play has the potential to significantly impact its earnings. However, investors have not shown the same optimism, with Apple's stock underperforming compared to the Nasdaq Composite and S&P 500. Munster compares the current stock action to Meta Platforms Inc. in 2022 and suggests that investors have limited confidence in Apple's AI strategy. **Deepwater Asset Management** managing partner **Gene Munster** thinks that while **Tim Cook's** first-time mention of AI during **Apple Inc.'s** (NASDAQ:AAPL) shareholder meeting in January failed to excite investors, he thinks Apple stock action in 2024 reminds him of **Mark Zuckerberg's Meta Platforms Inc.** (NASDAQ:META). He also believes Apple's AI play can move the earnings needle for Cupertino in double-digit percentages. **What Happened:** Munster expressed optimism about Apple's AI play, stating that the company's first AI model is expected to be announced sometime in June. However, investors in 2024 so far have not been very optimistic about Apple's prospects like analysts have. *See Also: Gene Munster Suggests Apple Acquire Rivian Following Surprising Cancellation Of Apple Car Project* However, Apple stock itself has not performed as well as it should have if AI is indeed a potential revenue maker for the company. In fact, the Nasdaq Composite has beaten the Apple stock as far as performance in 2024 so far is concerned. A $1000 investment in Apple at the beginning of 2024 would be worth $967.79 today. A similar investment in an index fund replicating the Nasdaq and S&P 500 would be worth $1,102.19 and $1,083.13, respectively. Essentially, Apple is down 5.68% this year so far, while Nasdaq is up 9.76%, and S&P 500 is up 8.18%. So what are investors not seeing that analysts like Munster are? "AAPL stock action this year reminds me a little of when in the fall of 2022 investor concern that Meta would lose share to TikTok pressured the stock to $100." > $AAPL is down 3% today because investors are voting they have limited confidence in their AI strategy. > > By now it's become clear that this June we will see their first foundation model, something that will compete with GPT, Gemini, xAI, Anthropic. > > The part that is not known is… > > — Gene Munster (@munster\_gene) March 4, 2024 **A $33B Opportunity:** Munster thinks Apple's AI model will join the ranks of **Microsoft Corp.-backed** (NASDAQ:MSFT) **OpenAI's GPT**, **Alphabet Inc.'s** (NASDAQ:GOOG) (NASDAQ:GOOGL) **Google Gemini**, **Elon Musk's xAI**, and **Anthropic**. While this would help Apple compete better with other Big Tech companies currently working on AI, what exactly would it mean for investors? Munster thinks it could give Apple a revenue boost. "Apple has 2.2B active devices, which I estimate are owned by 1.4B active users. If 20% of Apple’s active base subscribe to an AI product (personalized AI) at $10 a month, that's $33B a year in 80% margin revenue." He thinks Apple can leverage its user base to blaze past rivals working on AI, boosting its operating revenue by 16%. "In the end, these products (Meta, Google Search, Microsoft Office and Apple Services) are sticky in the long-term." **Price Action:** Apple closed at $172.47, down 1.5% on Monday, according to Benzinga Pro. *Check out more of Benzinga’s Consumer Tech coverage by* following this link*.* *Read Next: Apple Hit With $1.95B EU Fine In Spotify Antitrust Case* *Photo courtesy: Shutterstock* ### Related Stocks - [AAPL.US - Apple](https://longbridge.com/en/quote/AAPL.US.md) - [META.US - Meta Platforms](https://longbridge.com/en/quote/META.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 股神巴菲特再現「神準」操作 亞馬遜急跌前大減倉 再沽蘋果美銀 買入一隻媒體股 | 股神巴菲特在卸任巴郡 CEO 後，繼續調整投資組合。根據 SEC 13F 文件，巴郡大幅減持亞馬遜 770 萬股，持倉減少 77%；同時出售約 5,080 萬股美國銀行和 1,030 萬股蘋果，連續第三季減持蘋果。巴郡首次增持傳統媒體股，購 | [Link](https://longbridge.com/en/news/276191227.md) | | 金融倡導者投資管理公司減少了在 Meta Platforms, Inc. $META 的股票持倉 | Financial Advocates Investment Management 在第三季度將其在 Meta Platforms, Inc. 的持股減少了 66.7%，目前持有 2,343 股，價值 172 萬美元。其他機構投資者也調整了 | [Link](https://longbridge.com/en/news/276432394.md) | | “硬件防禦” 對沖 AI 焦慮，蘋果與納指相關性創 20 年新低 | AI 浪潮下，蘋果因未深度捲入軍備競賽，與納指相關性創 20 年新低，成為科技股動盪中的 “避風港”。在 AI 投資回報存疑及軟件業面臨顛覆的焦慮中，蘋果憑藉不易受衝擊的硬件生態逆勢突圍。儘管存在估值偏高及增長放緩壓力，其獨特的 “AI 中 | [Link](https://longbridge.com/en/news/276301841.md) | | 蘋果加速研發 AI 眼鏡、掛飾及攝像頭版 AirPods | 作為向人工智能驅動硬件轉型的一部分，蘋果公司正加速開發三款新型可穿戴設備，包括智能眼鏡、一款掛飾設備以及具備擴展 AI 功能的 AirPods。這些設備將圍繞 Siri 數字助理構建，並依靠具備不同功能的攝像頭系統，根據視覺語境執行操作。蘋 | [Link](https://longbridge.com/en/news/276167877.md) | | IronBridge Private Wealth LLC 持有蘋果公司價值 905,000 美元的股份 | IronBridge Private Wealth LLC 在第三季度將其在蘋果公司（NASDAQ:AAPL）的持股減少了 77.3%，目前持有 3,555 股，價值 905,000 美元。其他機構投資者，包括先鋒集團和道富銀行，已增加了在 | [Link](https://longbridge.com/en/news/276436345.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.