Amazon, Google, Microsoft seen as big AI winners, with Apple lagging: Needham
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Investment firm Needham Securities said on Thursday that Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG) (GOOGL) and Microsoft (NASDAQ:MSFT) are three of the potential long-term beneficiaries from generative artificial intelligence, with Apple (NASDAQ:AAPL) lagging behind.
Analyst Laura Martin said the aforementioned trio are seen as the "front runners" when it comes to working on large language models and as such, it's "clear" the winners in the AI race will be the ones that house LLMs. A by product of that is that she believes the respective trio will ultimately surpass Apple (AAPL) in market cap.
Martin, who has a buy rating on Apple, Amazon and Google, added that the Tim Cook-led company is not seen as a core beneficiary of generative AI as it is not an "arms dealer." And while the company can protect its users from leaving its ecosystem, she believes that Google (GOOG) will ultimately be aided by its Cloud business, generative AI capabilities and swath of consumer data.
Google (GOOG) (GOOGL) recently made several AI-related announcements, including its new fifth-generation tensor processing unit chip, known as TPU v5e.
On Wednesday, it was reported that Cupertino, California-based Apple (AAPL) had increased its spending on conversational artificial intelligence to "millions of dollars per day," with Siri potentially getting updated capabilities as a result. 
Apple (AAPL) shares fell more than 3% on Thursday amid worries about the iPhone's position in China.

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