Apple Explores Generative AI to Accelerate Chip Design | Markets Insider
iPhone maker Apple (AAPL) is planning to use generative artificial intelligence (AI) to enhance its chip design technology. Apple uses in-house, custom-made chips to power its devices, including iPhones, iPads, and Mac computers. Reuters was the first to report on the matter, citing a speech recording by Apple’s Senior VP of Hardware Technologies, Johny Srouji.
During his speech in Belgium last month, where he was receiving an award from Imec, a semiconductor research group, Srouji spoke about how Apple’s custom chips have evolved from the first A4 chip used in the iPhone in 2010 to the very latest ones found in Mac desktop computers and the Vision Pro Headset. With that in mind, Apple aims to further improve its chip design process to produce faster and better-designed chips.
Cadence Design Systems (CDNS) and Synopsys (SNPS) are the two largest electronic design automation (EDA) firms that supply chip design technology to companies. Srouji noted that even these firms are racing to integrate AI into their offerings. He added that Apple has learnt over the years that it must leverage advanced technology to bolster the process. “Generative AI techniques have a high potential in getting more design work in less time, and it can be a huge productivity boost,” Srouji said.
Additionally, he mentioned that Apple believes in going all-in on a project without looking back. For instance, when shifting its Mac computers from Intel’s (INTC) chips to its own in-house custom chips in 2020, Apple did not have a contingency plan or backup in case of failure. Designing and using its first Apple Silicon chip was a big transitional step for the company at the time, yet it did not have a Plan B, Apple simply went all-in. According to Srouji, this approach has worked very well for Apple so far.
Analysts remain divided on Apple’s long-term stock trajectory due to uncertainty surrounding Trump’s tariffs on iPhone production. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 16 Buys, nine Holds, and four Sell ratings. Also, the average Apple price target of $226.94 implies 15.4% upside potential from current levels. Year-to-date, AAPL stock has lost 21.3%.
