Key Takeaways
- After Microsoft-backed OpenAI unveiled its most capable artificial intelligence (AI) model yet called GPT-4o, analysts suggested a number of companies including Apple and Nvidia could stand to benefit.
- Apple could get a boost amid reports of an Apple and OpenAI partnership, as audio capabilities showcased at the event could potentially enhance the iPhone’s Siri.
- The gains driven by GPT-4o could also help accelerate growth for Nvidia and other chipmakers in the AI ecosystem.
After Microsoft-backed (MSFT) OpenAI unveiled its most capable artificial intelligence (AI) model yet called GPT-4o on Monday, analysts indicated that gains from the improved tech could benefit a number of companies including Apple (AAPL) and Nvidia (NVDA).
Analysts highlighted how new audio capabilities could enhance the iPhone’s Siri amid reports about a possible Apple partnership. They also noted how developments like the launch of GPT-4o could boost demand for cloud platforms, as well as drive growth for Nvidia and other chipmakers.
Apple Could Get Boost Amid Reports of OpenAI Partnership
In the wake of reports that OpenAI and Apple are near closing an AI partnership deal, CFRA analysts suggested Apple could potentially leverage a partnership with OpenAI and enhanced voice features to “help make the iPhone a true assistant for consumers (via a massive upgrade for Siri).”
“By combining voice, text and images seamlessly, the demo captured how AI can drive incredible amounts of productivity,” Bank of America analysts said in a report reiterating their “buy” rating for Apple on “benefits from GenAI at edge with gross margin upside and momentum in Services.”
Microsoft’s Azure Could Benefit From Cloud Demand
OpenAI’s new model could also serve to boost demand for Microsoft’s Azure, the exclusive cloud provider for OpenAI.
UBS analysts noted in a report Tuesday that the “competitive landscape is intensifying” for large language models (LLMs) with the release of GPT-4o, which relies on the internet to connect to remote servers that run the AI workloads, and that “leading cloud platforms that host LLMs are well positioned to benefit from increased consumption and uptake” associated with running AI workloads remotely.
Potential Growth Driver for Nvidia and Other Chipmakers in AI Ecosystem
At the end of the launch event, OpenAI Chief Technology Officer (CTO) Mira Murati thanked Nvidia and its CEO Jensen Huang “for bringing us the most advanced GPUs to make this demo possible,” underlining Nvidia’s prime position in the AI ecosystem with advancements made in the space benefiting the chipmaker.
Bank of America analysts wrote that progress in the AI race, like OpenAI’s GPT-4o launch, “could be a multi-year growth driver” for Nvidia, as well as Broadcom (AVGO), Marvell Technology (MRVL), Micron Technology (MU), Arm Holdings (ARM), and AMD (AMD), among others.