Use of in-house chips gives Apple more control over AI path, says Wedbush

Wedbush analyst Daniel Ives notes that according to a Bloomberg report, Apple has been putting some of its most advanced high-end chips in data centers that it intends to use to process its more advanced AI-based services with the more simplistic AI-related tasks set to be processed on the device. The firm believes that the fact Apple will be putting its advanced homegrown chips around AI gives Cupertino more control over its AI path and ultimately will build out a broader chip ecosystem for its AI strategy. In this AI Revolution, Apple is much further down the path of its own proprietary AI LLMs and technology than the Street expects, in Wedbush’s view, and this move is another tipping of the hand heading into what could be “the biggest unveil event for Cook and Cupertino in roughly a decade.” The firm keeps an Outperform rating on Apple ahead of WWDC next month, with a price target of $250 on the shares.