Apple’s Stock Surges to Record High on Announcement of Apple Intelligence AI Platform
In a surprising turn of events, Apple’s stock (AAPL) soared by as much as 6% on Tuesday, reaching an intraday record high as investors reacted to the unveiling of the tech giant’s new AI platform, Apple Intelligence. This marked the first time in 2024 that Apple had reached an all-time high.
The surge in stock price came after a slight dip on Monday during and after Apple’s WWDC conference. However, Wall Street analysts quickly changed their tune as they digested the news of Apple Intelligence.
D.A. Davidson managing director Gil Luria expressed his excitement about the new platform, stating, “If you look at the signal away from the noise, you realize that this is unprecedented capability that Apple is going to introduce and it’s going to integrate AI into everyday life.” Luria went on to upgrade Apple to Buy from Neutral and raised his price target to $230 from $200.
Apple Intelligence, the company’s long-awaited foray into the generative AI space, promises to revolutionize the way users interact with their devices. The platform will be integrated across Apple’s hardware and software products, including the iPhone, Mac, mail, messages, and photos. Apple Intelligence is set to launch this fall for the iPhone 15 Pro, iPads, and Macs running Apple’s M1 series chips and newer.
Key features of the launch include updates to Siri, allowing the virtual assistant to perform tasks like parsing addresses from messages and finding photos in a user’s library based on voice commands. Additionally, Apple introduced new software updates for its iPhone, watches, and computer products.
JPMorgan senior analyst Samik Chatterjee weighed in on the impact of the AI features, stating, “Our experience with consumer surveys with prior generations of iPhone launches tell us that the hardware upgrade cycle is more driven by a collection of feature upgrades across diverse applications, which in aggregate will provide reasons to upgrade over the next few years.” Chatterjee believes that the release of AI features across Apple’s devices will support an upgrade cycle for all products.
Overall, Apple’s announcement of Apple Intelligence has generated significant excitement among investors and analysts alike, propelling the stock to new heights. With the promise of enhanced AI capabilities across its product lineup, Apple seems poised for continued success in the tech industry.
