Apple shares hit new highs as market buys into AI vision
Apple (NASDAQ:AAPL) shares climbed to a new record high, moving above $203, on Tuesday as investors reacted enthusiastically to yesterday’s big AI reveal at the WWDC24.
Changing hands at $205.04 the iPhone maker’s stock was up around $12.00 or 6.17% for the day.
It comes after chief executive Tim Cook delivered a “flex the muscles moment” as the company kicked off its AI-dominated Worldwide Developers Conference (WWDC) in California.
Cook, with his keynote speech on Monday, ushered in what the company is calling “Apple Intelligence” – a packaged, wrapped-up, and branded version of AI that appears with the customary Apple marketing.
Apple Intelligence essentially comprises a suite of AI tools and capabilities that are being rolled into the Mac, iPhone, and iPad, plus the Siri personal assistant tech as well as Apple’s other devices.
It will be supported by new in-house AI microchips.
Also, central to the proposition appears to be the new partnership with ChatGPT creator OpenAI, which was formally confirmed amidst the conference.
Bullish analyst reaction
“Apple unveiled multiple new software enhancements in another ‘flex the muscles moment’ for Cook & Co. heading into a robust product cycle into the next 6-9 months led by the iPhone 16 launch later this Fall into its massive installed base,” Wedbush analyst Dan Ives said in a note.
“We believe Apple’s AI strategy will leverage its golden installed base around personalization and LLMs on the phone that should change the growth trajectory of Cupertino as spur an AI-driven iPhone upgrade cycle starting with iPhone 16.”
Ives added: “Apple Intelligence the Core of the AI Strategy.
“During the event, AAPL announced Apple Intelligence, a new personal intelligence system that makes personal products even more useful by infusing its software with this technology and upgrading existing apps to make them more useful and creating a more intuitive experience with the power of generative AI models.”
The Wedbush analyst described it as a “historic day” for Apple, and said the company “did not disappoint”.
With a price target of $275, Wedbush rates Apple at ‘outperform’.
