Veteran tech investor Gene Munster offered new Apple Inc. (NASDAQ:APPL) CEO John Ternus "a humble suggestion" on his first day to make a blockbuster artificial intelligence hire before year-end, even if it costs $50 million annually.
Munster Urges Ternus To Reverse Brain Drain
"A humble suggestion to Ternus on his first day; make a splashy AI hire by year-end," the Deepwater Asset Management managing partner wrote on X. "Yes, it may cost $50m a year but the payoff would be immediate on multiple levels."
Munster listed three benefits, including "recruiting AI talent," "injecting energy into product development" and, bluntly, "AAPL would go up."
His recommendation extends a broader warning as Ternus replaced Tim Cook on Sept. 1. Munster told Ternus, "Your first priority: reverse the brain drain," adding that "AI is moving much faster than the smartphone era did" and Apple risks losing control of the interface between consumers and AI. Apple’s transition has already put its AI and innovation challenges under fresh scrutiny.
Apple’s AI Talent Battle Intensifies Under Ternus
That talent battle is already visible. Reuters reported on Tuesday that OpenAI and Apple said in court filings that the ChatGPT maker has hired roughly 400 Apple employees for its hardware initiative. Apple is suing OpenAI and two former employees over alleged trade-secret theft, allegations OpenAI denies.
Meta has also recruited senior Apple AI talent, including Ruoming Pang, who led its foundation-models team, as part of a broader raid on Apple’s AI ranks.
Ternus Faces Pressure To Reinvent Apple
Speaking to CNBC, Munster said Ternus’ hardware background and recruiting experience could help. "They went with a product person, and I think that’s important," he said. Ternus needs to "light up recruiting and bring in awesome talent, because they still need to reinvent themselves."
The pressure is immediate. Reuters said Apple enters the Ternus era still chasing rivals in AI after delays to its revamped Siri and weak Vision Pro sales. One investor called AI "the single biggest challenge for Ternus."
Apple remains financially formidable. Under Cook, annual revenue climbed from $108 billion to $416 billion, while profit rose more than fourfold to $112 billion.
Munster has long argued the leadership change could reset Apple’s story. When Apple announced Ternus’ appointment in April, he said the incoming CEO could "supercharge $AAPL’s multiple by changing the narrative."
Benzinga’s Edge Stock Rankings indicate that AAPL stock maintains a strong price trend in the short, long, and medium terms, with a moderate growth score.
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