Apple stock price surged to a new high of $207.15 per share on Tuesday, up 7% from the previous day. This sharp increase was due to Apple’s announcement of significant advancements in artificial intelligence at the annual developer conference on Monday.
The FOMC meeting started, and the US stock market showed a negative trend with all indices falling.
During the WWDC conference, Apple introduced a series of new AI features, including a revamped Siri voice assistant, integration with OpenAI’s ChatGPT, various writing assistance tools, and customizable emojis. Apple refers to these features as “AI for the common people,” but users may need to upgrade their iPhones to use them.
Apple’s stock price exceeded its previous all-time high set on December 14th last year. The WWDC developer conference is a highly anticipated event, and investors were eager to see how Apple would capitalize on the current AI trend. Judging from the stock price performance, investors seem quite satisfied.
Analysts at Morgan Stanley praised Apple’s new AI features, calling them the “most differentiated consumer digital representation.” They expect these innovations to encourage users to upgrade their iPhones, potentially speeding up the device replacement cycle. Morgan Stanley maintains an Overweight rating on Apple with a target price of $216 and an optimistic valuation of $270.
Analysts at Bank of America also predict that AI-driven “smartphones” will lead to an upgrade cycle. They reiterated their buy rating on Apple stock, mentioning the potential for a multi-year upgrade cycle, margin improvement, and service growth.
Evercore analysts believe that confidence in Apple’s AI strategy has increased. They think Apple’s approach will encourage users to upgrade their devices, especially as new AI features are restricted to the latest iPhone models.
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