Calls to replace Tim Cook as Apple’s CEO are getting LOUDER

A Wall Street analyst, Laura Martin from Needham, advises caution on Apple stock due to the company’s unclear artificial intelligence strategy, particularly in generative AI. Martin warns that Apple risks falling behind its Big Tech competitors if it doesn’t clarify its AI approach, which could potentially jeopardize Tim Cook’s job.

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In a client note on Friday, Martin emphasized the need for Apple to articulate a GenAI action plan. She pointed out that Apple is currently 1-2 years behind its Big Tech competitors, making it expensive to catch up through higher costs to the profit and loss (P&L) and capital expenditures (capex), and possibly even an acquisition.

Furthermore, Martin warned that if Apple doesn’t take action, tech talent will leave the company to work for major players in artificial intelligence such as Meta Platforms, OpenAI, Anthropic, and others.

Martin expressed her belief that Apple’s share price will decline once investors understand the investment levels required to catch up with the other Big Tech conglomerates that were early adopters of generative AI.

She also mentioned that the lack of a clear AI strategy could even cost Chief Executive Tim Cook his job.

Martin highlighted the increasing calls from the press and Wall Street to replace Tim Cook as Apple CEO every quarter that Apple doesn’t present a comprehensive GenAI strategy. She noted that Apple shares have fallen 14% year to date, compared to the S&P 500’s 8% increase, indicating that investors are demanding that Apple take action and move off the sidelines.

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