Ming-Chi Kuo expects Apple to invest $4.75 billion in purchasing AI servers in 2024. He believes that Apple will use these servers to train its self-developed AI models to enhance security. Apple is set to purchase AI servers equipped with Nvidia chips. Kuo notes that Apple's investments in AI still lag behind those of Microsoft, Meta, and others. He expresses concerns that Apple will need to continue making substantial investments in its AI business in the future.

Ming-Chi Kuo expects Apple's MacBook shipments to decline by 25-35% year-over-year in the fourth quarter. He indicates that the total MacBook shipments for 2022 will see a significant drop of about 30% compared to the previous year. Kuo mentions that the MacBook faces challenges such as the end of work-from-home demand and decreased attractiveness of chip upgrades. He points out that if AI stocks are key suppliers for the MacBook, their performance should be monitored to see if it can offset the decline in MacBook shipments. Kuo advises a cautious outlook on AI stocks that serve as major suppliers for the MacBook.

Investors' expectations for Nvidia are higher than the market consensus. Nvidia's CoWoS fourth quarter shipment growth rate is expected to slow down quarter over quarter. The decline in ChatGPT traffic is increasingly influencing AI stocks.

NVIDIA's release of the L40S may shift investors' focus towards AI edge computing. The L40S is a compute-accelerating graphics card suitable for applications such as graphic rendering, training and inference of large AI models, 3D design, and video processing. The generative AI inference performance of the L40S is 1.2 times higher than that of the A100, and its training performance is 1.7 times higher.

AI/AIGC is already a clear trend, but changes in the industry will create new winners and losers. If AI/AIGC cannot create a sustainable profitable business model, investments in AI/AIGC may slow down. OpenAI could go bankrupt before the end of 2024, with daily operating costs for ChatGPT reaching nearly $700,000.