15 hrs ago
Gene Munster's Bullish Bets Span Apple, NVIDIA, SpaceX And AI
Gene Munster is an investor who follows technology companies closely.
He thinks Apple could perform very well during the next year, even though some analysts are worried about its iPhone growth.
He believes Apple needs to hire more artificial-intelligence experts.
He also thinks Apple is unlikely to lose most of its customers to an AI device made by OpenAI.
Munster is very positive about NVIDIA because he believes businesses will keep spending heavily on AI technology.
NVIDIA’s profit margin forecast was slightly lower than expected, but he does not think that changes the larger AI story.
Munster also thinks xAI, the company behind Grok, is improving quickly.
He expects future Grok versions to become strong competitors to OpenAI and Anthropic.
Gene Munster expects Apple to outperform the rest of the “Mag 7” over the next year despite a Jefferies downgrade and iPhone-cycle concerns.
He says Apple’s biggest long-term risk is losing its consumer-AI interface as employees move to OpenAI, and urges CEO John Ternus to make a major AI hire.
Munster views NVIDIA’s 74% October gross-margin guide as a minor setback compared with a potentially larger AI market and says investors should prepare for an “AI tsunami.”
He believes xAI could overtake OpenAI and Anthropic within months, helped by anticipated Grok 4.7 and Grok 5.0 releases.
The article says Apple trades near $325 with a $4.75 trillion market value, while NVIDIA trades near $217 with a $5.24 trillion valuation.
- Who
- Investment analyst Gene Munster; Apple, NVIDIA, OpenAI, Anthropic and xAI are the companies discussed.
- What
- Munster gave bullish views on Apple and NVIDIA while predicting rapid progress by xAI and Grok.
- Where
- The companies and markets discussed are primarily in the United States technology sector.
- When
- The article discusses Munster’s current commentary and cites milestones including September 1, 2026, for John Ternus’s reported start as Apple CEO, Grok 4.7 in about a month, and Grok 5.0 around December.
- Why
- Munster sees durable AI demand, a larger-than-expected AI market and continued technology growth, while identifying Apple’s AI talent and interface position as risks.
Cautious Signals
Munster's Bullish View
Apple's next growth phase
Cautious Signals
Jefferies downgraded Apple to underperform, while concerns remain that the iPhone super cycle could cool after several quarters of stronger growth.
Munster's Bullish View
Munster said Apple did not miss its second-quarter iPhone number and expects the stock to outperform the rest of the “Mag 7” over the next year.
Apple versus OpenAI
Cautious Signals
Munster identifies Apple’s loss of control over the interface between consumers and AI as its biggest long-term risk, especially after employee departures to OpenAI.
Munster's Bullish View
He argues OpenAI faces a high hurdle because it would need to design, manufacture and distribute a broad, affordable family of devices and services compelling enough to make Apple users switch.
NVIDIA's margin outlook
Cautious Signals
NVIDIA’s 74% October gross-margin guidance was below the Street’s 75% estimate, contributing to a slight decline in the stock.
Munster's Bullish View
Munster says the margin difference is a minor blip and that NVIDIA’s revised outlook implies a substantially larger AI market than previously expected.
Key facts
- Apple view
- Munster said Apple should outperform the rest of the “Mag 7” over the next year.
- Apple valuation
- The article says Apple had a market capitalization of $4.75 trillion and traded around $325.
- NVIDIA view
- Munster described the AI growth story as intact and called the lower margin guidance a minor blip.
- NVIDIA valuation
- The article says NVIDIA had a market capitalization of $5.24 trillion and traded around $217.
- Apple AI risk
- Munster said roughly 400 Apple employees had moved from Apple to OpenAI and urged Apple to reverse its “brain drain.”
- xAI forecast
- Munster expects xAI to overtake OpenAI and Anthropic within months, although this is his prediction rather than a confirmed development.
- Upcoming Grok models
- The article says Grok 4.7 is expected in about a month and Grok 5.0 around December.
Quotes
Gene Munster
Investment analyst and co-founder of Deepwater Asset Management
“Anthropic’s business continues to be on fire, and for the first time meaningfully moving the growth needle for NVIDIA.”
financialexpress.com
“I disagree and think the next year AAPL will outperform the rest of Mag 7”
financialexpress.com
Sources
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