CUPERTINO, Calif. – Apple’s stock experienced a significant surge of up to 6% on Tuesday, reaching a new intraday record following the unveiling of its AI platform, Apple Intelligence. This increase came after a slight decline during and after the company’s WWDC conference the day before. Analysts on Wall Street responded positively to the company’s announcements, with D.A. Davidson managing director Gil Luria upgrading Apple’s rating to Buy and raising the price target.
Apple introduced its long-anticipated venture into the generative AI space with “Apple Intelligence,” a platform integrated across the company’s hardware and software products. The AI platform will be available for the iPhone 15 Pro, iPads, and Macs running on Apple’s M1 series chips and newer versions later this fall. Notable upgrades include enhancements to Siri’s capabilities, which will allow for tasks like searching for specific photos in a phone’s library through voice commands.
JPMorgan senior analyst Samik Chatterjee highlighted the potential of the AI features in driving an upgrade cycle across Apple’s various devices. The announcement of Apple Intelligence marked the culmination of weeks of speculation, including rumors of a collaboration with OpenAI operator, ChatGPT.
Despite a slow start to the year due to concerns about iPhone demand, Apple’s stock has seen a 15% increase in the past two months. Analysts predict that the new AI features, exclusive to later iPhone models, could trigger the next upgrade cycle as consumers are drawn to the enhanced functionality.
The unveiling of Apple’s AI platform and subsequent market response solidified the company’s position as the second-most-valuable globally, with a market capitalization exceeding $3.1 trillion, just behind Microsoft. Analysts believe that the addition of AI features could propel Apple’s growth from low single digits to potentially high-single digits over the next year or two.
Looking ahead, analysts like Luria foresee a positive trajectory for Apple’s stock, driven by the anticipated product upgrade cycle fueled by the innovative AI technology. This shift in growth trajectory could position Apple for acceleration and increased revenue potential in the near future.