Apple's $20 Billion Artificial Intelligence Problem

By Travis Hoium – Jun 18, 2024 at 6:15AM

If AI replaces search, it could cost Apple billions.

Apple's (AAPL 0.31%) new artificial intelligence tools have caused a pop in the stock, but will they be good for the business? More device sales would be bullish, but if AI replaces searches that generate $20 billion in annual revenue from Alphabet (GOOG +0.00%) (GOOGL 0.07%), it would be bad for Apple's bottom line.

*Stock prices used were end-of-day prices of June 14, 2024. The video was published on June 16, 2024.

About the Author

Travis Hoium is a contributing Motley Fool stock market analyst covering solar energy, technology, and growth stocks. Before The Motley Fool, Travis was a mechanical engineer at 3M and founded a virtual reality company. He holds a bachelor’s degree in mechanical engineering and a master’s degree in business administration from the University of Minnesota.

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