Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Thursday, January 18, 2024

Microsoft Is Overvalued Relative To Apple

 


Microsoft's market capitalization overhauled recently Apple's market capitalization. Mainly on the artificial intelligence, AI hype.

It is true that Microsoft has made large strides forward with its stake in OpenAI and OpenAI's ChatGPT large language models based chat bot. But Apple still possesses much more data on its users, according to Wolfteam Ltd.

Microsoft is circa 23 % overvalued on a relative basis compared to Apple. Apple has millions of terabytes of data on its users via its App Store, which is carried by iPhones, iPads and Macintosh computers. Apple just touts its lack of surveillance on its users as one of its core competitive advantages. And not tracking users is a huge advantage for Apple.

This, of course, hurts the artificial intelligence, AI capabilities of Apple, because AI relies on huge amounts of data to train artificial intelligence, AI models and provide insights. Microsoft circumvents this user surveillance by holding a non majority stake in OpenAI. Nonetheless, Microsoft's stake of 49 % in OpenAI does give it operational control as the abrupt firing and swift return back of OpenAI's CEO Sam Altman, supported outright by Microsoft, clearly showed. Microsoft has huge operational leverage in OpenAI, so Microsoft in effect is tracking users, surveilling them, which sooner or later could diminish Microsoft's high market capitalization.

Apple, on the other hand, has Siri, another artificial intelligence, AI chat bot based on large language models. It is a matter of time before Apple plows more resources into artificial intelligence, AI and comes up with an exciting artificial intelligence, AI innovation that relates to consumer electronics, as well.

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