Steve Eisman, famous for his role in “The Big Short,” recently emphasized Apple’s (NASDAQ: AAPL) pivotal role in the expanding artificial intelligence landscape. Once considered a “hidden” player in artificial intelligence, Apple is now a prominent force in this field.
The company’s stock surged 10% this week following the Worldwide Developer Conference, where Apple unveiled its suite of Apple Intelligence products, making Apple surpass Microsoft (NASDAQ: MSFT) as the world’s most valuable company.
Eisman believes that Apple’s new range of products that support OpenAI’s ChatGPT will encourage consumers to upgrade their mobile devices, significantly boosting the Cupertino giant’s revenue, production, and sales.
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“If AI is going to broaden out beyond just the cloud, people are going to use it on their phone, and that means Apple, and that means that my phone, which I bought a year ago, is going to be obsolete, and you are going to have the biggest refresh,” Eisman noted.
There are more AI “hidden plays,” according to Eisman
While Eisman is bullish on Apple, he and his team are also investigating other potential beneficiaries of the AI boom.
“I’m not going to tell you what those companies are because I haven’t bought them yet. But that’s what we’re working on right now,” he said.
This AI-fueled rally has significantly boosted stocks in 2024 despite some investor concerns about the tech-driven nature of these gains.
The S&P 500 and Nasdaq Composite hit record highs on June 12, up nearly 14% and 18% for the year. Meanwhile, the Dow Jones Industrial Average has seen a modest increase of less than 2%.
Meanwhile, AAPL stock forms a Golden Cross
This week’s gains have been highly welcome for AAPL stock, as it is finally benefiting from the ongoing AI boom and starting to participate in this highly competitive arena.
As the week carried on, the 50-week simple moving average (SMA) moved back above the 200-day displaced moving average (DMA), forming a “golden cross,” which is a bullish technical indicator for the medium-to-long-term gains for AAPL stock.
This is the first Golden Cross for Apple stock in over a year, as the previous one occurred on March 13, 2023. It signals that the technicals and momentum are finally on the tech giant’s side after months of trading in the red and falling behind its rivals.
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