Meta Platforms Inc., Apple Inc., OpenAI, Microsoft Corp. and Alibaba Group Holding Ltd. are taking different positions across the AI market as demand for computing power continues to outstrip supply and new AI formats broaden adoption.
CLSA Sees Chip Shortage Lasting Through 2030
CLSA’s Bhavtosh Vajpayee told CNBC on Wednesday that the industry remains in the early stages of its AI buildout, making it difficult to identify which downstream companies will ultimately dominate.
CLSA estimates demand for GPUs and custom AI chips currently exceeds supply by about 73% and expects the shortage to persist until roughly 2030.
Vajpayee said expectations for the AI semiconductor cycle to peak in 2028 look “utterly wrong.” He sees upstream semiconductor and hardware companies benefiting from a shortage that is worsening even as AI infrastructure spending expands.
He also noted that large semiconductor companies trade at lower valuation multiples than many other parts of the AI ecosystem.
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Meta’s Muse Highlights Easier AI Adoption
Vajpayee identified Meta’s Muse as a notable recent development because it makes creating AI agents easier through simple language commands.
He believes simpler interfaces could expand AI use among consumers who do not want to understand coding or more complex development tools.
He expects similar advances to emerge in China, where companies including Alibaba are also developing smaller AI models.
Apple Could Become A Key AI Gateway
Vajpayee expects smaller AI models to push artificial intelligence beyond data centers and onto personal devices.
While OpenAI is developing its own device, he pointed to Apple as particularly important because smartphones already sit at the center of consumers’ daily lives.
He said the smartphone could become the primary gateway through which many consumers access AI services.
For now, CLSA sees clearer opportunities in the hardware supplying the AI boom than among model developers, where Vajpayee said it remains too early to determine the eventual winners.
Price Action: Microsoft shares were up 0.60% at $501.00, Meta Platforms shares were up 0.90% at $743.24 and Apple shares were up 0.24% at $340.57 during premarket trading on Wednesday, according to Benzinga Pro data.
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