Hatem Dhiab, Managing Partner at Gerber Kawasaki Wealth & Investment, joins BNN Bloomberg to discuss the outlook for the tech sector amid earnings season and tariff treaths. <\/p>\n
An investment advisor says he\u2019s impressed by technology giants incorporating artificial intelligence and that a digital transformation is getting started for the \u201cMagnificent Seven.\u201d<\/p>\n
\u201cIt\u2019s really the beginning of a multi-year cycle,\u201d said Hatem Dhiab, managing partner of Gerber Kawasaki Wealth & Investment, in an interview with BNN Bloomberg on Wednesday. \u201cI think this quarter, we saw the halo effect of all the AI spend that is happening across all these Mag 7 companies.\u201d<\/p>\n
The Magnificent Seven refers to a group of influential U.S. technology companies, Apple, Microsoft, Nvidia, Amazon, Tesla, Google parent Alphabet and Facebook parent Meta Platforms, whose stocks have significantly driven market growth in recent years.<\/p>\n
\u2018Apple is a company to watch\u2019<\/p>\n
While Apple\u2019s Siri product has been out for over a decade, Dhiab said results have been lackluster. However, he said Apple has been changing its strategy by spending more money to make Siri a top AI companion in the market.<\/p>\n
\u201cIf you looked at their R&D (research and development) spend this quarter, you\u2019ve seen that they spent almost US$9 billion,\u201d said Dhiab. \u201cI think Apple is a company to watch, but it\u2019s not there yet. I think what\u2019s exciting, though, is the fact that their iPhone sales are back up, which means that Apple is coming back to growth.\u201d<\/p>\n
Apple, which has struggled due to U.S. President Donald Trump\u2019s tariffs<\/a>, has recently highlighted plans for more AI tools<\/a>, making products more intuitive. It also plans to release an iOS 26 upgrade in September around the same time Apple traditionally rolls out the next iPhone models. <\/p>\n Dhiab said that while there was a hit to demand from customers buying iPhones in late spring due to tariffs, the company has a brand affinity with users. <\/p>\n \u201cIn my firm, we just upgraded all of our devices, and nobody wanted to buy anything but Apple devices,\u201d said Dhiab. \u201cI think people have a huge affinity to the product. We love our iPhones. We can\u2019t live without them.\u201d<\/p>\n ‘Superintelligence\u2019 for AI<\/p>\n Dhiab said he was impressed by Meta\u2019s second quarter financial results<\/a>. The tech company reported that 3.48 billion people used one or more of its applications (Facebook, WhatsApp or Instagram) in June, up six per cent year over year. In the earnings release, Mark Zuckerberg, founder and CEO of Meta, emphasized his ambitions for developing what he calls \u201cpersonal superintelligence for everyone in the world\u201d with AI systems. <\/p>\n \u201cMeta is really about engagement,\u201d said Dhiab. \u201cIf you look at the engagement numbers, it\u2019s up 20 per cent for Instagram, for example. It\u2019s really impressive. I think what Meta has done is incorporate AI into a lot of its products already, and it\u2019s showing into the bottom line.\u201d<\/p>\n The company\u2019s revenue also grew by 22 per cent to $47.52 billion in the second quarter. <\/p>\n Microsoft to benefit from AI: advisor<\/p>\n Microsoft, which recently soared past a $4 trillion valuation, is already seeing strong results from its AI spending spree, Dhiab noted. The companies\u2019 suite of applications, including Azure, Outlook and Microsoft 365, highlighting the $30 billion capital expenditure to meet AI<\/a> demand, he said.<\/p>\n \u201cIf you look at the numbers from Microsoft, you\u2019ve seen the halo effect of AI through other products,\u201d said Dhiab. \u201cAzure was up almost 35 per cent and outlook is up. Every product that they have is up quite a bit, and simply because they\u2019re incorporating their AI processes around their whole software stack. I think if you think about that, just that technology upgrade that\u2019s happening over the next few years, Microsoft is probably the best position to benefit from it, because they are really an enterprise.\u201d<\/p>\n Microsoft says it\u2019s building a full-stack AI app and agent factory that \u201cempowers every developer not just to use AI, but to create with it\u201d.<\/p>\n Azure AI Foundry will reportedly provide a unified platform for building, fine-tuning, and deploying intelligent agents with confidence while Foundry Local brings open-source models to the edge enabling flexible, on-device inferencing across billions of devices, according to a company memo. <\/a><\/p>\n Windows AI Foundry will build on the foundation, integrating Foundry Local into Windows 11 to \u201csupport a secure, low-latency local AI development lifecycle deeply aligned with the Windows platform\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Hatem Dhiab, Managing Partner at Gerber Kawasaki Wealth & Investment, joins BNN Bloomberg to discuss the outlook for…\n","protected":false},"author":2,"featured_media":54381,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,49,48,61],"class_list":["post-54380","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-ca","tag-canada","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/54380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=54380"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/54380\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/54381"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=54380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=54380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=54380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}