We recently compiled a list of the 10 AI news you shouldn’t miss. In this article we will look at where Apple Inc. (NASDAQ:AAPL) ranks relative to the other can’t-miss AI stocks.
According to a Department of Energy-backed study, power demand in U.S. data centers could nearly triple over the next three years. As the industry undergoes an artificial intelligence transformation, data centers could account for as much as 12% of total U.S. electricity consumption. The Lawrence Berkeley National Laboratory report shows that annual data center energy consumption could be between 74 and 132 gigawatts by 2028. The report was created in an effort to understand how demand for Big Tech data centers will impact electricity grids, utility bills and the climate.
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“This really tells us where the line is when it comes to growing energy demand in the US…” What this report highlights is what is actually growing the fastest, and the leading edge of US demand growth is the very new growth in artificial energy production. -intelligence data centres”.
An analysis by McKinsey shows that the United States is expected to be the fastest growing data center market, fueled by the continued increase in data, computing power, connectivity through digitalization, cloud migration and the scaling of new technologies, especially AI.
A similar study by Bain & Company shows that global electricity demand is estimated to increase by 72% between 2019 and 2023 due to the increase in AI. The research also shows that demand could double 2023 levels by 2027 and is expected to continue rising beyond 2027. However, this percentage is highly uncertain, depending on factors such as generative AI adoption, regulations, and the ability of the data center supply chain to handle demand. growth and commercialization of emerging energy technologies.
With the need for energy growing rapidly, the energy ecosystem is grappling with many challenges at the same time. From reliable energy sources, energy sustainability and upstream power access infrastructure to power equipment in data centers, many issues need to be addressed before power needs can be met. According to a McKinsey study, it is time to purchase new power connections for data center locations in major data center hubs such as Northern Virginia; Santa Clara, California; and Phoenix has increased. So much so that locations outside the United States have placed moratoriums on many new data centers, mainly because they don’t have the energy infrastructure to support them. Meeting these needs is therefore very important to fully utilize the potential of artificial intelligence.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research shows that we can outperform the market by imitating the best stock picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (see more details here).
A wide view of an Apple Store, showing the range of products the company offers.
Number of hedge fund holders: 158
Apple Inc. (NASDAQ:AAPL) is a technology company that makes personal computers, mobile devices and software. The recent innovation is Apple Intelligence, Apple’s AI-powered personal system. Apple Intelligence uses AI to summarize and group notifications. Recently, the company’s AI feature came under fire when it ran a false headline on BBC News about a high-profile murder in the United States. The news claimed that Luigi Mangionse, the man arrested after the murder of health insurance CEO Brian Thompson in New York, had shot himself, even though he had not done so. In response, the BBC has filed a complaint with the corporation “to raise these concerns and resolve the issue”.
“BBC News is the most trusted news medium in the world. It is vital to us that our audiences can trust any information or journalism published in our name, including alerts.”
In short, AAPL is in 2nd place on our list of AI stocks you shouldn’t miss. While we recognize AAPL’s potential as an investment, our belief lies in the belief that some AI stocks hold greater promise for delivering higher returns in a shorter time frame. If you’re looking for an AI stock that’s more promising than AAPL but trades at less than five times earnings, check out our report on the cheapest AI stocks.
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Disclosure: None. This article was originally published on Insider Monkey.
