Apple offers clean capital-light AI exposure
Apple represents a highly clean and less capital-intensive AI story compared to its mega-cap peers, with potential upside from services growth and upcoming AI upgrades.
The argument
The hosts discussed Apple's upcoming earnings, highlighting the high-margin services segment (expected $30.4B, 14% growth) and the potential for a surprise 'agentic' Siri upgrade.
The thesis, stress-tested
✓ What validates it
- ✓Services revenue exceeding $30.4 billion
- ✓Announcement of agentic AI features in the summer
▸ Risks discussed
- ▸Siri upgrade delays or failure to impress consumers
- ▸Weakness in China hardware sales
Hear it yourself
"Morgan Stanley says AWS is entering an acceleration phase for its AI workload migrations. So this is like regular workloads moving within the cloud from just being plain vanilla to being, like, AI stuff and the volumes of that just being much higher for AI, which is likely. They think 38, AWS growth in 2026, and the street is at 26%. So, obviously, bulls. One other thing that I wanted to bring out, Mark Mahaney, is looking at a modest beat on both revenue and earnings, but is worried about q two. And he's saying that, because of, I don't know. I guess, like, some mixture of CapEx or whatever. So"
08:45
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