Apple first became the world’s most valuable company in 2011 and it has, for the most part, held on to the title ever since. But analysts at Needham say that could change soon.
“Generative AI will redefine the basis of competition for media and internet companies,” Martin says. “It’s hard to pick losers today, because it’s very early. However, we believe that clear winners are the arms dealers that house large language models .” “Not only do [Microsoft, Amazon, and Google’s] LLMs have the lowest cost structures and first-mover advantages, but their average lifetime value per Cloud customer is about to skyrocket owing to the stickiness of apps built on their LLMs,” Martin writes.
Needham rates Apple a Buy and has a $195 target price. Shares recently traded around $180. Apple couldn’t immediately be reached for comment.