Is Ai A Threat To Big Tech

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Is Ai A Threat To Big Tech

Is Ai A Threat To Big Tech Stocks?

The tech sector changed forever with the arrival of ChatGPT in 2022. Since then, tons of AI tools have flooded the market and disrupted their respective markets.

Does this mean the AI is now a real threat to the magnificent 7 stocks, such as Alphabet, Microsoft, and Meta? With the industry at the crossroads, let's explore this question:

Innovation

If we look back, firms like Google were known for their innovation. In those times, the Google Search was purely innovative and something great.

Today, we can't say the same about any big tech company. For starters, Apple hasn't done something innovative in years. Because if you look at new iPhone models, they lack the innovation that was once the hallmark of Apple.

Disruption

One needs big and expensive chips to generate better AI models. This means we will not be getting any more garage entrepreneurs who could make something disruptive within a budget.

To even stand a chance, big money is needed to disrupt the tech sector. Also, the big 7 stocks aren't doing anything that could be classified as disruptive.

Search Engines

The search engines will be the ones that are most affected by the AI. For starters, people have already started to use ChatGPT and other AI models to get their questions answered.

Fast forward to 1-2 years, why would anyone go to Google when they can just get their answers from the AI? In that regard, there's no doubt that Alphabet has a lot to offer.

It's safe to say that the business model of Google is now at risk and faces a real threat. That's why, Alphabet is now the cheapest stock among the M7.

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