By Graham Summers, MBA | Chief Market Strategist
Yesterday marked a major moment in the development of Artificial Intelligence (AI).
In case you missed it, yesterday was Apple’s (AAPL) Worldwide Developers Conference (WWDC): AAPL’s annual event during which the company unveils new technology, software updates and new features to its product ecosystem.
The company unveiled several new items, specifically the introduction of Liquid Glass: a software update that mimics the translucency and refraction of glass on AAPL device screens. It’s stunning to see rendering images in crisp lucid tones. And for the first time AAPL will be introducing a feature across platforms working on iPads, laptops, desktops and even TVs.
However, the big news from AAPL’s WWDC wasn’t Liquid Glass. In fact, it wasn’t any specific announcement AAPL made. The biggest news was what AAPL didn’tannounce.
AAPL didn’t announce anything related to AI.
AAPL is a $3 trillion tech company. It is the 3rd largest company in the world. And for decades it has been at the forefront of technological innovation, developing the iPod, iPhone, iPad and other groundbreaking devices that have become loved by consumers worldwide.
In this context, the fact AAPL has effectively abandoned any pretensions of developing a major AI infrastructure is extremely telling. Specifically, it tells us that:
- The race for dominance in AI infrastructure is now between Alphabet, Amazon, Microsoft, and xAI.
- The AI revolution is now pivoting to phase 2: physical AI.
Regarding #1, big tech is currently spending hundreds of billions of dollars developing AI networks/ infrastructure. It is unclear who will ultimately emerge as the leader in this process but based on comments by Meta’s Market Zukerberg and Microsoft’s Satya Nadella, this is a “winner takes all” opportunity. As such, these companies are willing to burn through mountains of cash for the chance to become the dominant player in the space.
Which brings us to #2, which is in fact the BIGGER opportunity for investors. The AI revolution is now pivoting to Phase 2: physical AI.
Put simply, for AAPL to drop out of the AI infrastructure race is a signal that the software phase in AI development is coming to an end. Put another way, the BIG money has already been made here. Indeed, companies like Nvidia and Meta and Amazon all rising triple digits since AI first took the investing world by storm.
This means the next phase of the AI revolution is about to begin. I’m talking about physical AI: where AI software is integrated with hardware (robots, tools and other devices).
Why is this so exciting?
Because investors make BIG money when they move early into a major market trend. And it is clear that the next major market trend is going to be physical AI.
Take a look at Richtech Robotics (RR), a smallcap physical AI robotics company that manufactures robots for the restaurant industry, and you’ll see what I mean. After consolidating for two years the chart broke out the upside in late 2024/ early 2025 (green line in the chart below). And as I write this, RR shares have just broken out of a falling wedge formation signaling that the next leg up is likely about to begin. Please note this is a VERY small company and shares are volatile. So be sure to do your due diligence before putting any capital to work.
We are in the process of putting the final touches on a new special investment report The AI Plays Your Broker Doesn’t Know About. It will detail three investments in the physical AI space that Wall Street has no idea even exist, let alone their potential.
To make sure you receive a copy as soon this report is ready, all you need to do is join our daily market commentary Gains Pains & Capital.
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Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
