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ETFs to Gain as Apple Reportedly Takes the Generative AI Leap

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Per a Bloomberg Report, Apple is planning to foray into artificial intelligence (AI), which defines a significant moment for it. Apparently a bit late to jump on the bandwagon, as quoted on a CNBC article, the company will now reportedly develop its own large language model (LLM) — "Apple GPT."

The Bloomberg News report revealed that Apple has a dedicated team of engineers working on an internal AI project called Ajax. By venturing into the arena of LLMs, Apple looks to enhance the power of AI technology to produce human-like text and code.

This strategic move highlights Apple's acknowledgment of the worth of AI in formatting the future of technology. While other tech giants have already started walking the AI route, Apple's entrance has triggered investor enthusiasm, leading to a brief spike in the Apple stock this week.

Although Apple has been including machine learning in its products, such as Siri and facial recognition in the Photos app, its entry into the LLM space comes somewhat later than its competitors, per a CNBC article. Microsoft has already integrated OpenAI's ChatGPT, Google has combined Bard into its search engine, Amazon plans to offer LLMs through AWS, and Meta has recently open-sourced a large LLM project.

How Will the AI Push Help Apple?

Apple's reported pledge to AI development suggests that the company may come up with revolutionary AI-related announcements in the near future. While details are limited so far, expectations are rising among both technologists and investors. If Apple can successfully power its internally developed LLM, it can potentially reform various sectors, including natural language processing, content generation, and user interfaces.

ETFs in Focus

Against this backdrop, we highlight a few ETFs that are heavy on Apple. These ETFs can gain in the near term if Apple comes up with a groundbreaking announcement related to its AI push.

Technology Select Sector SPDR Fund (XLK - Free Report) – Apple has a weight of 22.91%

Fidelity MSCI Information Technology Index ETF (FTEC - Free Report) – Weight 22.61%

Vanguard Information Technology ETF (VGT - Free Report) – Weight 21.67%

iShares Global Tech ETF (IXN - Free Report) – Weight 21.55%

iShares U.S. Technology ETF (IYW - Free Report) – Weight 18.44%

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