Apple Stock vs Nvidia and Microsoft - Is AAPL An AI Buy?

Undoubtedly, $Apple(AAPL.US)$ stands to benefit from integrating AI technology into its ecosystem. With a range of products and services, including the iPhone, iMac, Apple TV, and Siri, the company has a solid foundation from which it can leverage AI advancements.

While Apple remains a powerhouse in the tech sector, its role in AI may not be as pivotal as that of other players. Companies like Nvidia, Microsoft, and even Amazon stand out as leaders in AI development and implementation.
$NVIDIA(NVDA.US)$ , for instance, provides essential hardware for AI technologies, while Microsoft leads with services like Copilot and Azure. $Amazon(AMZN.US)$ , with its vast resources and AWS platform, also holds a significant presence within this technology, such as Amazon Q, besides benefiting from AI development and autonomous advancements in its operations.

Comparatively, Apple occupies a position of "lesser relevance" in the AI landscape compared to other major players. Although not considered an underperformer in AI, its growth prospects in this domain appear less pronounced compared to industry leaders like Nvidia and $Microsoft(MSFT.US)$ .
That said, Apple also doesn't seem to be an "AI loser".
Looking again at other major players, we have $Alphabet-C(GOOG.US)$ , which struggles to be relevant and attempts to develop similar services, including its shot at establishing “gemini”. Despite these efforts, the market still holds some apprehension regarding Google's primary segment, considering a scenario where questions are directed straight to virtual assistants, diminishing the relevance of search.
This seems to be a driver in Google Stock being traded at a relative discount today.
Regarding Apple's valuation, although slightly lower, it is very close to the other two mentioned companies, Microsoft and Nvidia, which may demonstrate stronger growth potential in the AI space. Looking ahead to the next 12 months, we have the following P/Es: