and whether the major investments AI requires are sustainable for the long haul.
CFRA analyst Angelo Zino believes that the impact of these new features will not be felt until the iPhone 16 launches in September, the first to feature the new AI powers built-in across all options. He pointed out that Mark Zuckerberg’s company raised its investment projections last April as it devoted a few billion dollars more on the chips, servers and data centers needed to develop generative AI.
The AI frenzy has helped Microsoft’s cloud computing business grow in the double digits, something that analysts said could be hard to sustain. The picture “might be a little less clear” for Google parent Alphabet, which will be the first to publish results on Tuesday, “because of their search business” online, warned Zino.