Apple stock hits record high after AI announcements

Apple (AAPL) stock jumped more than 5% on Tuesday to an intraday record as investors digested the announcement of its AI platform, Apple Intelligence.

After the stock fell Monday during and after the company’s WWDC conference, the stock rose as some Wall Street analysts cheered the company’s announcements.

“If you look at the signal away from the noise, you realize that this is an unprecedented capability that Apple is going to introduce and that it is going to integrate AI into everyday life,” said Gil Luria, director general from DA Davidson, to Yahoo Finance (video above).

After Monday’s event, Luria upgraded Apple to Buy from Neutral and increased his price target from $200 to $230.

On Monday, Apple announced “Apple Intelligence,” its long-awaited foray into generative AI. The company said the platform will be integrated into all of the company’s hardware and software products, ranging from iPhone and Mac to Mail, Messages and Photos. Apple Intelligence will be available for iPhone 15 Pro and iPads and Macs powered by Apple’s M1 series chips and newer later this fall.

Key launch features include updates to Siri, which will now be able to, for example, scan phones for addresses sent in messages or search photos in a phone’s photo library based on voice messages . Apple also launched new software updates for its iPhones, watches and computer products.

“Our experience with consumer surveys on previous generations of iPhone launches tells us that the hardware upgrade cycle is driven more by a set of feature upgrades in various apps, which together will deliver.. . reasons to upgrade over the next few years.” » wrote JPMorgan senior analyst Samik Chatterjee in a note to clients Monday.

He added: “The release of AI features on Mac, iPad and iPhone will support an upgrade cycle on all devices. »

These announcements capped a month of enthusiasm for the title, while rumors around certain news, notably a partnership with ChatGPT operator OpenAI, had already spread.

After briefly being overtaken by Nvidia (NVDA), the iPhone maker’s stock is now once again the second most valuable company (behind Microsoft) in the world with a market capitalization of more than $3.1 trillion.

Apple CEO Tim Cook delivers remarks at the start of the Apple Worldwide Developers Conference (WWDC) on June 10, 2024, in Cupertino, Calif. (Justin Sullivan/Getty Images) (Justin Sullivan via Getty Images)

After a slow start to the year due to fears of slowing iPhone demand, Apple stock is now up more than 15% over the past two months. Analysts like Luria and Chatterjee believe the next iPhone upgrade cycle could be on the horizon, as the new AI features are only coming to the iPhone 15 pro and later generations.

“As people buy new phones during the holiday season, they will discover this great feature,” Luria said. “They’ll show it to their friends and family and the product upgrade cycle will happen…

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