Apple has ruled for years. The times are changing, as they say. Apple iPhones are outdated. After years of growth, device sales have stalled. Additionally, the corporation is involved in a U.S. Department of Justice antitrust litigation that could continue years and cost millions or billions in legal fees and fines.
It may be time for investors to look elsewhere for outperformance. Let's examine two AI stocks that potentially replace Apple's portfolio.
1. MS Starting with Microsoft (NASDAQ: MSFT). Microsoft's market valuation has eclipsed Apple's in recent months, continuing their decades-old rivalry.Microsoft's AI advantages contribute to that. Several AI projects are paying off for the corporation.
Microsoft's Copilot chatbot joins the AI chatbot trend. Copilot can make graphics, compose emails, code, and shop, so Microsoft hopes it will become many people's "everyday AI companion."
Microsoft's cooperation with ChatGPT-maker OpenAI puts it at the forefront of AI innovation. One year after ChatGPT went viral, Microsoft added several ChatGPT capabilities to Office, capitalizing on the hype.
Finally, Microsoft's massive cloud services business should gain from AI market development. Microsoft, the No. 2 cloud services provider, holds many of the high-performance machines needed to run the latest AI models, thus AI startups will flock to it to scale their models. Microsoft may profit from the AI revolution in various ways. Therefore, investors may want to buy Microsoft and sell Apple.
2. Super Micro PC Super Micro Computer (NASDAQ: SMCI) stock has risen 800% in a year. That extraordinary outperformance shouldn't deter long-term investors. The reason is: The Super Micro Computer business concept is simple. The company develops the hardware that houses and cools the pricey, complicated GPUs that enable the most complex AI models.
So Super Micro Computer is rolling like an ice cream shop in a hot. That boom won't last forever. However, it may continue longer than expected. The GPU industry is predicted to rise 10 times from 2022 to 2032. Additionally, their figures may be too conservative. According to industry insiders, the market might reach $400 billion by 2027, not 2032.
Whatever the case, high-powered GPUs and server racks are in high demand. That's why analysts estimate Super Micro Computer's sales to climb from $7.1 billion to $14.6 billion this year. Sales should exceed $20.7 billion by 2025, says Wall Street. Long-term investors seeking a solid growth company may examine Super Micro Computer.
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