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Apple Poised to Dominate the Mobile AI Revolution, Says ‘Big Short’ Investor Steve Eisman

As artificial intelligence (AI) matures into its second wave, focusing increasingly on mobile applications, Apple stands to become a key player in this burgeoning field, according to renowned investor Steve Eisman. Famous for his prediction of the 2008 financial crisis, as depicted in “The Big Short,” Eisman highlighted Apple’s strategic positioning to capitalize on the impending shift from cloud-based to mobile AI applications.

Eisman, a senior portfolio manager at Neuberger Berman, pointed out that while current market attention is riveted on AI giants like Nvidia and AMD, which are central to powering data center operations, the real game-changer will be the migration of AI applications to everyday mobile use. “The future of AI will increasingly find its home not in remote data centers, but right in our pockets,” Eisman suggested, emphasizing the imminent need for devices capable of handling sophisticated AI applications directly.

This shift is expected to drive substantial demand for new, more capable hardware, potentially catalyzing a new product cycle for Apple, from iPhones to laptops. “I have the new phone. That phone is probably not going to be capable to do some of the apps that you’re going to want to do,” Eisman remarked, underscoring the necessity for next-generation technology to keep pace with AI developments.

Bernstein analyst Toni Sacconaghi echoed this sentiment, recently shifting from a neutral stance to a more bullish outlook on Apple, particularly noting the potential integration of AI hardware as a significant growth catalyst. This perspective was further bolstered by Apple’s strong performance in its latest earnings report, where CEO Tim Cook hinted at major AI-related announcements on the horizon.

The anticipation around Apple’s AI initiatives is not just about software enhancements but also about the hardware that will enable them. Analysts, including Dan Ives from Wedbush Securities, predict that an “AI-driven iPhone 16 supercycle” could begin as early as September, revitalized by innovations that could transform user interactions with their devices.

As Apple gears up for its Worldwide Developers Conference in June, where more details about its AI strategies are expected to be unveiled, the tech giant is well-positioned to leverage its robust ecosystem and user base, potentially setting the stage for a new era of mobile technology driven by AI.

Eisman’s commentary not only highlights Apple’s potential in reshaping its product offerings but also aligns with broader industry trends focusing on sustainable growth through innovation, making Apple a compelling watch for investors and tech enthusiasts alike.