Deepwater Asset Management’s Gene Munster discusses two large AI opportunities that the Street seems to be missing.
AI Potential: On CNBC’s “Squawk Box,” Munster highlighted Meta Platforms Inc META and Apple Inc AAPL as underappreciated AI plays in the market.
Munster emphasized the significant upside potential of these companies relative to market expectations.
Meta is utilizing AI to enhance advertising campaigns and engagement, with anticipated business growth of 50% over the next two years, according to Munster.
However, Munster highlighted an underappreciated opportunity for Meta, particularly concerning the open-source large language model (LLM) called “Llama.” He suggested that monetizing this platform could propel Meta into a different “atmosphere.”
Deepwater’s research on Meta’s Llama indicates the potential for monetization, presenting a significant opportunity for the company, explained Munster.
If Meta successfully monetizes Llama, it may announce a foray into cloud infrastructure, entering the domain of major players like Amazon’s AWS, Microsoft’s Azure, and Google Cloud, he said.
Munster believes that Meta represents the “biggest AI opportunity” that is currently misunderstood, warranting more attention from investors.
Apple is another underappreciated player in the AI space, as per Munster. The tech giant is preparing to launch its own foundational AI model, anticipated to debut in June.
Contrary to common belief, Munster asserts that Apple is actively involved in AI innovation, with expectations for its foundation model to capture approximately 20% of the market and command a monthly fee of about $10 per user.
Referring to both Meta and Apple, Munster stated, “I think Llama, and I think personalized AI with Apple, those are the two biggest unknowns or biggest opportunities relative to where the Street’s at.”
Price Action: At the time of publication, Meta shares were down 0.66% at $466.49, and Apple shares were down 0.73% at $188.02, according to Benzinga Pro.
Photo: Joshua Woroniecki from Pixabay.