Apple faces investor doubts over AI plans and growth

Jamie Murray, president of Murray Wealth Group, tells BNN Bloomberg that Apple lacks a coherent AI monetization strategy despite its strong brand, while SpaceX enters the public market at an aggressive 94 times revenue valuation. Murray identifies Uber and Mastercard as undervalued “physical” and “infrastructure” AI plays.

Why is Apple’s AI strategy failing to impress investors?

Apple failed to provide a breakthrough artificial intelligence strategy at its latest Worldwide Developers Conference, according to Jamie Murray. While the company introduced an improved Siri powered by Google’s Gemini models, Murray told BNN Bloomberg that Apple isn’t monetizing AI. This differs from peers like Meta, Google, and Amazon, who are generating significant revenue through AI-driven consumption models.

Apple currently trades at 31 times earnings. Murray notes that investors are searching for “torque to the upside” that the company hasn’t yet delivered. Unlike OpenAI or Anthropic, which use token-based models where increased usage directly boosts revenue, Apple remains primarily a hardware-centric business.

Is the SpaceX IPO valuation too aggressive?

SpaceX is preparing for an IPO at a valuation of 94 times revenue, a figure Murray describes as “exceptionally aggressive” for a capital-intensive business. Despite this, he notes the offering is already oversubscribed due to the company’s unique market position.

The IPO will involve a small float, likely between 3% and 4% of the company. Murray warns that while a “pop” is possible on the initial opening due to low supply, the long-term performance is uncertain. He compares the current investor appetite for SpaceX to the “growth at all costs” mentality that fueled early investments in Nvidia, Google, and Meta.

How will OpenAI and Anthropic IPOs impact the market?

OpenAI and Anthropic have both filed S-1 documents with the SEC. Murray expects these companies to seek trillion-dollar valuations, though they will likely only release a small float of 3% to 5% to the public. This would result in offerings valued between $35 billion and $50 billion.

According to Murray, the capital raised from these IPOs won’t stay in the companies’ banks. Instead, the funds will flow directly into data center expansion, benefiting semiconductor giants like Nvidia and Broadcom. He predicts that the downstream effects of AI will begin appearing in more traditional economy companies by 2027.

Why is Uber considered a “physical AI” opportunity?

Uber represents a shift toward “physical AI”—the application of machine intelligence in the real world rather than just in data centers. Murray points out that Uber’s core ride-hailing and delivery businesses are growing 15% to 20% annually while increasing free cash flow.

While some investors fear that Tesla or Waymo will dominate the robotaxi market, Murray claims Uber has established partnerships with companies ranked third through 15th in the autonomous vehicle space. He believes Uber’s reach across the ecosystem will allow it to surpass Waymo in the number of robotaxis on its platform within five years. Uber currently trades at 19 times earnings.

What is the long-term outlook for Mastercard?

Mastercard is positioned as an infrastructure play in an increasingly complex digital commerce environment. Murray tells BNN Bloomberg that the company is trading at a decade-low multiple. He argues that as payments move from a simple “cash-to-card” shift to an “agentic” and e-commerce-driven system, the need for a trust and governance layer increases.

Murray projects that Mastercard can grow revenue by 10% to 15% annually over the next decade. Based on a discounted cash flow model, he suggests the company’s intrinsic value is 70% to 80% higher than its current share price.

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