Key Points
Apple (NASDAQ: AAPL) and Meta Platforms (NASDAQ: META) are lagging in the AI sector. Apple has made minimal AI investments, opting not to build extensive data centers for AI development, while Meta has invested heavily—over $100 billion—into AI without significant returns, relying mainly on its ad business to recoup costs.
As of now, Apple is collaborating with Alphabet to integrate AI into its devices, but is struggling to catch up as competitors enhance their AI capabilities. Conversely, Meta’s strategy focuses on developing AI technologies for future products like AI glasses, but is facing pressure from investors due to a lack of monetizable returns from its current AI investments.
Market response reflects these dynamics: Meta’s valuation is considerably lower than Apple’s, trading at half the price-to-earnings multiple. Despite this, there are indications that Meta could still turn its fortunes around if it successfully launches monetizable AI products, while Apple risks falling behind if it cannot scale its AI offerings effectively in the future.
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