Deepwater's Doug Clinton on AI: Apple and Amazon Lag Behind Nvidia, Microsoft, Meta, Alphabet

Doug Clinton, CEO of Intelligent Alpha and Deepwater Asset Management, believes Apple and Amazon lag in AI development compared to Nvidia, Microsoft, Meta, and Alphabet. His AI models prefer the latter four companies for their strong AI businesses. Clinton acknowledges Apple's loyal user base gives it an advantage, but notes its AI strategy is weaker than its peers.

Title: Doug Clinton: Apple and Amazon Lag in AI Race; Nvidia, Microsoft, Meta, and Alphabet Lead

Doug Clinton, CEO of Intelligent Alpha and Deepwater Asset Management, has expressed his belief that Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) are lagging in the artificial intelligence (AI) race compared to their tech giant peers. In a conversation with Yahoo Finance, Clinton revealed that his AI-driven models have been avoiding these two companies, instead favoring Nvidia Corp. (NVDA), Microsoft Corp. (MSFT), Meta Platforms Inc. (META), and Alphabet Inc. (GOOGL) due to their more robust AI narratives.

Clinton argued that the AI stories for Apple and Amazon are "a little bit weaker" than those of their competitors. He believes that Apple's massive, loyal user base gives it an advantage, but notes that the tech giant has not yet developed a compelling AI strategy. According to Clinton, Apple has a two-year window to solidify its AI strategy, supported by a dedicated customer base that owns multiple devices and uses its services.

Meanwhile, Nvidia is making significant strides in developing a new AI chip for the Chinese market, featuring its latest Blackwell architecture. The new chip, tentatively named the B30A, is expected to be more powerful than the existing H20 model that Nvidia is currently permitted to sell in China. Despite the uncertainty surrounding U.S. regulatory approval, Nvidia aims to provide sample chips to Chinese clients for testing by next month.

In contrast, Apple's stock has been underperforming. On Monday, Apple fell 0.30% to $230.89, losing 5.31% on a year-to-date basis and gaining 2.21% over the past year. The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ) also ended slightly below the flat line on Monday, with the SPY down 0.022% at $643.30 and the QQQ declining 0.040% to $577.11.

References
[1] https://www.benzinga.com/markets/equities/25/08/47202259/deepwaters-doug-clinton-says-apple-amazons-ai-stories-are-weak-from-nvidia-to-meta-heres-what-his-ai-models-are-a-fan-of
[2] https://news.ssbcrack.com/nvidia-developing-new-ai-chip-for-china-amid-u-s-regulatory-concerns/