Kevin Simpson, speaking recently on CNBC, noted that hardware which facilitates the use of ChatGPT could be a meaningful threat to Apple Inc. (NASDAQ:AAPL) over the longer term. Simpson pointed out that this idea was first raised by The Guardian, a UK-based newspaper.
Simpson is the founder and Chief Investment Officer of Capital Wealth Planning.
A wide view of an Apple store, showing the range of products the company offers.
The Potential Threat to Apple Inc. (NASDAQ:AAPL) From ChatGPT
After former Apple designer Jony Ive went to work for OpenAI recently, the Guardian warned that “the next great iPhone moment may not come from Apple Inc. (NASDAQ:AAPL),” Simpson explained. Instead, OpenAI could create an extremely popular hardware product that can facilitate the use of its ChatGPT AI model.
In such a scenario, the iPhone would get “bypassed,” Simpson warned.
“That’s a lot more scary (for Apple) than 25% tariffs on iPhones made in China,” the veteran investor said.
Simpson Recommends Holding AAPL Despite the threat, Simpson recommends that investors continue to hold the name.
The Recent Price Action of AAPL Stock
In the last month, the stock has fallen 7%, while it has sunk 21% in the last three months.
While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AAPL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
