<div id="readability-page-1"><div><div><p><strong>Doug Clinton</strong>, CEO of Intelligent Alpha and Co-founder of <strong>Deepwater Asset Management</strong>, believes <strong>Apple Inc. </strong><span>AAPL</span> and <strong>Amazon.com Inc.</strong> <span>AMZN</span> are lagging in the artificial intelligence race compared to their tech giant peers.</p><p><em>Check out Apple’s stock price over here.</em></p><div><div><div><p>Trending Investment Opportunities</p></div></div></div><h2>Which Stocks Does The AI Stock Picking Model Prefer?</h2><p>According to his conversation with Yahoo Finance, Clinton’s AI-driven models have been avoiding the two, favoring instead companies with more robust AI narratives. </p><p>“The four companies that our AI models are fans of at the moment do have very strong AI businesses,” Clinton stated, identifying them as <strong>Nvidia Corp.</strong> <span>NVDA</span>, <strong>Microsoft Corp. </strong><span>MSFT</span>,<strong> Meta Platforms Inc.</strong> <span>META</span>, and <strong>Alphabet Inc. </strong><span>GOOG</span> <span>GOOGL</span>.</p><p>“We have not been in on Apple or Amazon, and I think there’s a really interesting distinction between those two,” Clinton explained.</p><p>He argued that the AI stories for both companies are “a little bit weaker” than their counterparts. This sentiment from Deepwater’s models suggests that, from a quantitative perspective, the AI strategies of Apple and Amazon are not as compelling as those of their competitors, who are seen as having more established and powerful AI-driven business segments.</p><h2>Apple Can Still Pull Out ‘A Win In The Future’</h2><p>Addressing the viewpoint of his Deepwater co-founder, <strong>Gene Munster</strong>, who argues that <strong>Tim Cook</strong> has time to develop Apple’s AI strategy, Clinton conceded that Apple benefits from its massive, loyal user base.</p><p>“Look, if Apple didn’t have this incredible user base… they might look more like an Adobe,” Clinton said, referencing Adobe’s stock struggles amid fears that AI could disrupt its core business.</p><p>He believes this gives Apple a unique advantage. “Apple is probably getting some benefit of the doubt that they can come into this race late, as they often do, still show a really great product, and then ultimately maybe pull out some kind of a win in the future.”</p><h2>Apple Still Has Two Years To Develop Its AI Strategy</h2><p>Munster’s core argument is that Apple has a roughly two-year window to solidify its AI strategy, supported by a dedicated customer base that owns multiple devices and uses its services. </p><p>He notes that while competitors like Google, Meta, and Microsoft have significantly ramped up AI-related capital expenditures since 2021, Apple’s AI strategy has remained flat. However, Munster believes investor expectations for Apple’s AI are so low that even minor advancements could significantly boost market sentiment, creating a “low bar” for the tech giant to clear.</p><h2>Price Action</h2><p>Apple fell 0.30% to $230.89 on Monday and rose 0.0087% in after-hours trading. It has lost 5.31% on a year-to-date basis and gained 2.21% over the past year.</p><p><strong>Benzinga's Edge Stock Rankings</strong> indicate that AAPL maintains a stronger price trend in the short, medium, and long terms. However, the stock scores poorly on growth and value rankings. Additional performance details are available here.</p><p>The <strong>SPDR S&amp;P 500 ETF Trust</strong> SPY and<strong> Invesco QQQ Trust ETF</strong> QQQ, which track the S&amp;P 500 index and Nasdaq 100 index, respectively, ended slightly below the flat line on Monday. The SPY was down 0.022% at $643.30, while the QQQ declined 0.040% to $577.11, according to Benzinga Pro data.</p><p>On Tuesday, the futures of the S&amp;P 500, Dow Jones, and Nasdaq 100 indices were trading lower.</p><ul> <li><strong>Dan Ives Just Revealed Four Explosive New Picks Into His AI Revolution 30 List — And He Says These Companies Will Define Future Of AI</strong></li> </ul><p><strong><em>Disclaimer:</em></strong><em> This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.</em></p><p><em>Photo courtesy: jamesteohart / Shutterstock.com</em></p></div></div></div>

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<p>Doug Clinton, CEO of Intelligent Alpha, critiques Apple and Amazon's AI strategies, stating they lag behind competitors like Nvidia and Microsoft. He believes both companies have weaker AI narratives, although Apple benefits from a loyal user base. Clinton suggests Apple has a two-year window to enhance its AI strategy, with low investor expectations potentially allowing for significant market sentiment boosts. Apple’s stock fell 0.30% to $230.89, reflecting a 5.31% year-to-date loss, while broader market indices also showed slight declines.</p>

- Doug Clinton, CEO of Intelligent Alpha, asserts that Apple Inc. and Amazon.com Inc. are falling behind in the AI race compared to competitors like Nvidia, Microsoft, Meta, and Alphabet.  
- He notes that while Apple has a loyal user base, its AI strategy has not evolved significantly, giving it a two-year window to improve.  
- Despite recent stock fluctuations, Clinton believes that even minor advancements in Apple's AI could positively influence market sentiment due to low investor expectations.

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Deepwater's Doug Clinton Says Apple, Amazon's AI Stories Are Weak: From Nvidia To Meta, Here's What His AI Models Are A Fan Of