Bernstein analysts suggest Wall Street isn’t properly modeling the extent to which gross margins, a profit metric, could take a hit due to the rising costs of smartphone components.
There’s still room for AI hardware stocks to rise, but analysts at Morgan Stanley say it’s time to diversify into a wide variety of industries that are starting to realize AI benefits.
Looking beyond the artificial-intelligence stocks that have become almost household names for investors, there are other ways to play the boom in computing hardware.
Anthropic CEO Dario Amodei and others are warning that AI models may be able to build on themselves, without the help of humans. It’s a concept known as recursive self-improvement.
