Here's a thought: what if the best way to win the AI race is to not actually run in it? That's essentially the argument CNBC's Jim Cramer made about Apple Inc. (AAPL) on Monday, telling investors they should think twice before selling the stock even as it opened lower.
Cramer's case hinges on Apple playing a different game entirely. While everyone else is burning cash trying to build the next great large language model, Apple is sitting pretty, waiting to integrate the winners into its ecosystem. Cramer, during CNBC's Mad Dash, pointed to a new Morgan Stanley report that advances a $300 price forecast for the tech giant.
The interesting shift here, according to Cramer, is in the analyst narrative. For the first time, the focus isn't on how memory prices might pinch Apple's margins. Instead, the conversation has pivoted to the company's strong revenue potential. He favored this new perspective, noting that the Morgan Stanley piece suggested revenues will be "so good" that investors can finally stop worrying about component costs.
The 'Free Rider' Strategic Advantage
This brings us to Cramer's core thesis: Apple is the "greatest free rider." Think about it. While competitors are spending hundreds of billions of dollars trying to keep up with ChatGPT, Claude, or Perplexity, Apple took a different path. It leveraged its one undeniable asset—a massive, captive audience of over a billion users—to cut a deal.
That deal, of course, is with Alphabet Inc. (GOOGL) to bring Google's Gemini AI to the iPhone and other Apple platforms. Cramer believes Apple secured a "non-onerous" arrangement, quipping that the company is essentially getting "paid to take Google." Instead of building the highway, Apple is collecting the tolls.
Gemini's Integration and What It Means
So what happens when Gemini lands on every new iPhone? Cramer predicts it will immediately become a top-three consumer chatbot. He acknowledged that unseating OpenAI's ChatGPT and Anthropic's Claude in the enterprise space will be tough, but he was full of praise for Gemini, calling it "one of the best, if not the best," chatbots available.
The conclusion is simple, yet powerful. Apple's ultimate advantage isn't necessarily having the best AI; it's having the best distribution. By providing an immediate, global audience for these tools, Apple solidifies its position as the indispensable platform. It doesn't need to win the model war; it just needs to host the victor.
AAPL Price Action: Apple shares were up 0.75% at $272.26 at the time of publication on Monday, according to market data.
