We recently published a list of 10 AI Stocks Taking Wall Street by Storm. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other AI stocks taking Wall Street by storm.
The race to gain a competitive edge in the generative artificial intelligence industry fiercely continues, and Anthropic is the latest one making a move. On Monday, the artificial intelligence startup announced the launch of its advanced AI model, Claude 3.7 Sonnet, stating that it is its “most intelligent” version yet. This model can produce faster responses or display its step-by-step reasoning process, as reported by Reuters.
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Anthropic’s hybrid model combines multiple reasoning approaches to solve complex problems more effectively. It was launched amid fierce competition in the world of AI. According to the company, the Claude 3.7 Sonnet model is its most advanced version and will be available on all Claude plans, including Free, Pro, Team, and Enterprise. However, it noted that the “extended thinking mode” feature is only available on paid plans.
“This model has all the capabilities wrapped together — we want one coherent AI that can help with everything. There’s an advantage in simplicity for our customers.”
-Anthropic co-founder and science chief Jared Kaplan told CNBC in an interview.
Kaplan further stated that the “hybrid” model, going live immediately, operates like a human brain. While some questions require quick responses, many others require critical thinking, which is why the company is looking to integrate both. Elaborating on the extended thinking mode, the company said that it is a model that “self-reflects before answering,” thereby improving its performance in math, physics, instruction-following, coding, and many other tasks. Notably, the company said that this model has been specifically designed to focus on “real-world” tasks instead of math and computer science problems. This is so that it can reflect how businesses use large-language models.
According to analysts, Anthropic’s move can grant it an edge against OpenAI and other tech companies investing in AI technologies.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A wide view of an Apple store, showing the range of products the company offers.
Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology company. On February 21, the company announced that Apple Intelligence, Apple’s personal intelligence system, is coming to Apple Vision Pro in April. Apple Vision Pro is a mixed-reality headset by the company. With Apple Intelligence integrated into the product, users will be able to use Writing tools for quick proofreading, summarizing, or rewriting, use ChatGPT to write text from scratch, use Image Playground to develop fun images, and much more.
The company said that Apple Intelligence will be available in beta on visionOS 2.4 with support for U.S. English, while more features and support for additional languages will be rolled out throughout the year. visionOS 2.4 has also introduced new apps and features to allow users to explore spatial computing. The Spatial Gallery, a new app for Vision Pro, comes with a curated collection of spatial photos, spatial videos, and panoramas.
“Apple Vision Pro is helping users communicate, collaborate, and experience entertainment in entirely new ways — and we’re continuing to push the boundaries of what’s possible in spatial computing with visionOS 2.4. With Apple Intelligence, Vision Pro users will be able to take their productivity and creativity to new heights using features like Writing Tools, Image Playground, and Genmoji. And we’re excited for users to discover and share incredible new experiences with Spatial Gallery.”
-Mike Rockwell, Apple’s vice president of the Vision Products Group.
Overall, AAPL ranks 5th on our list of AI stocks taking Wall Street by storm. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.