According to a leading Wall Street analyst, Apple may no longer reign supreme in terms of market capitalization, as two artificial intelligence (AI) growth stocks are expected to soar past the tech giant. The rise of the "Big Three" cloud providers, namely Amazon, Microsoft, and Alphabet, gives them a significant advantage in delivering AI services to the masses.

Apple, once considered invincible, became the first publicly traded company in the U.S. to surpass the $1 trillion market capitalization milestone. Since then, it has achieved greater heights, breaching the $2 trillion and $3 trillion thresholds. However, fierce competition has emerged, leading to frequent shifts in market cap rankings. Currently, Microsoft holds the crown with a market cap of over $3.01 trillion, surpassing Apple's $2.87 trillion.

The sudden leap forward in AI technology, particularly the advent of generative AI, has sparked immense interest across industries. AI algorithms have been in existence for decades, but the capabilities of generative AI took the technology to new heights. These models have the ability to not only identify patterns in data but also generate entirely new content with minor input from users. Moreover, they can automate tasks, enhancing productivity and efficiency in workplaces.

Recognizing the tremendous potential of AI, Microsoft made a significant move by investing $13 billion in OpenAI, the creator of ChatGPT. The company developed AI tools for its software-as-a-service offerings, including Microsoft Office and 365. Microsoft's AI-fueled digital assistant, Copilot, offers over 150 features aimed at saving time and boosting productivity.

Alphabet, too, jumped into the AI race swiftly. Its Pathways Language Model (PaLM) paved the way for its highly capable AI model called Gemini. Outperforming ChatGPT, the Gemini Ultra model has shown impressive results across various language benchmarks.

Not to be outdone, Amazon introduced its business-focused AI assistant called Q. Designed to streamline tasks for users of its Amazon Web Services (AWS) cloud infrastructure, Q offers functions such as internet and database searches, email summarization, and support request completion. Additionally, Amazon made a $4 billion investment and announced a strategic collaboration with OpenAI competitor Anthropic AI.

The common thread among these AI leaders is their status as the "Big Three" cloud computing providers. Laura Martin, an analyst from Needham, believes that Microsoft Azure, AWS, and Google Cloud are poised to benefit the most from generative AI. As gatekeepers of large language models (LLMs), they have the lowest cost structures and first-mover advantages, positioning them advantageously as AI app creators.

Considering that approximately 60% of corporate data resides in the cloud, with 98% of companies worldwide storing at least some of their data in the cloud, the reach of the "Big Three" makes them prime beneficiaries of the ongoing AI adoption.

While Apple is reportedly working on its own AI technology, primarily focused on protecting its installed base of iPhones, it faces tough competition from the established cloud providers. A significant portion of Apple's revenue, 52% of its $383 billion in fiscal 2023 revenue, comes from iPhone sales.

Estimates project that AI's market opportunity could reach $1 trillion over the next decade or even higher. The potential benefits of generative AI extend beyond improving existing businesses for Amazon, Microsoft, and Alphabet. Their extensive cloud infrastructure enables them to offer AI services to the masses, adding another revenue stream to their already dynamic businesses.

In terms of valuation, Amazon, Microsoft, and Alphabet are currently trading at relatively low multiples, with forward earnings multiples of 33 times, 31 times, and 20 times, respectively. This makes them attractive investment opportunities considering the vast potential of AI.

While Apple's dominance in market capitalization faces new challenges, the rise of AI growth stocks seems inevitable. The "Big Three" cloud providers are well-positioned to seize the opportunities presented by AI, changing the landscape of competition in media and internet companies.

Disclaimer: The opinions expressed in this article are based on the provided information and may differ from The Motley Fool's Premium Investing Services.