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Twitter Phase 3 AI could be the biggest wave of the AI boom so far.
Some of the richest people in the world are putting billions behind it. And 5 little-known stocks are in position to profit.
Apple (NASDAQ: AAPL) passed Nvidia (NASDAQ: NVDA) on Friday to become the world’s most valuable company.
Apple’s market value hit about $5.11 trillion. Nvidia sat at $5.09 trillion. Apple shares touched a record near $352.
Nvidia took the top spot back later in the day. But the two giants are now separated by just a few billion dollars.
The trigger was the iPhone Duo.
The new phone hit stores on Friday. It’s Apple’s first foldable iPhone, and it starts at $1,999. The top model sells for $3,199.
That’s a steep price for a phone. Buyers are paying it anyway.
· Apple says demand beat its first supply of phones
· Pre-order deliveries now stretch into late January
· Customers are limited to two phones each
Want to know where the next big product wave is coming from? Here’s my top 5 stocks for Phase 3 AI.
Morgan Stanley’s supply chain checks point to about 6.5 million iPhone Duos built in the second half of this year.
At $1,999 each, that’s roughly $13 billion in sales.
And that’s using the cheapest model.
The regular iPhone is still the main event. Apple sold $54.25 billion of iPhones last quarter. That was about half of its $109.42 billion in total sales.
But the Duo brings in far more money per phone.
Foldables will make up just 2.2% of smartphones shipped this year, according to research firm IDC.
Yet they’ll bring in 6.9% of all smartphone revenue. Apple is on track to grab 44% of that foldable market by value.
Apple stock is up 27% this year. That’s the best gain of any Magnificent Seven stock by a wide margin.
Don’t look for the Duo in Apple’s next earnings report on November 2 though.
The phone launched after the quarter closed. The first real read on sales comes in the report after that.
Apple won this round the old-fashioned way. It built a product people want and charged a premium for it. With deliveries already pushed into January, I expect a very strong holiday quarter.
The next big product may not fit in your pocket at all.
Elon Musk, Jeff Bezos and Sam Altman are betting on AI that works in the physical world. I call it Phase 3 AI.
Click here to see my top 5 stocks for it.
Ian Wyatt