Apple shares hit all-time high after unveiling AI features for iPhone, other devices
Apple shares surged 7% to a record high Tuesday as Wall Street expressed optimism that the company’s newly announced AI plans will drive a fresh wave of iPhone purchases.
In what Apple CEO Tim Cook billed as a “game changer,” the Cupertino, California-based firm unveiled a partnership with ChatGPT maker OpenAI and an in-house platform called “Apple Intelligence” for its devices beginning this fall.
New features include a major AI overhaul of the Siri voice assistant, a new “Genmoji” system for creating custom images and various AI-powered writing tools.
Only Apple’s newest devices, most powerful devices, such as the iPhone Pro 15 Max and Macs equipped with M-series computer chips, are capable of using the AI features. That sparked predictions of a “super-cycle” of iPhone sales as Apple prepares to launch its next iPhone model later this year.
Evercore ISI analyst Amit Daryanani said the Apple event left him with “increased confidence” about the company’s AI plans.
“Restricting Apple Intelligence to iPhones sold within the last year adds to our conviction that AI can help kick off an iPhone super cycle,” Daryanani said in a note to clients. “We remain confident in Apple’s AI strategy and their ability to deliver GenAI to users without $10s of billions in GPU capex.”
Analysts for Bank of America and Morgan Stanley also signaled in client notes that Apple’s AI push could boost iPhone sales, CNBC reported.
Apple gained a whopping $180 billion in market value after its stock closed at $207.15.
The stock surge pushed Apple’s valuation to $3.15 trillion, trailing only Microsoft as the world’s most valuable company.
The announcements drew strong approval on Wall Street, with at least 13 research analysts raising their price targets for the company’s stock following the presentation.
Wedbush analyst Daniel Ives also had a bullish reaction to the announcements while maintaining an “outperform” rating and a $275 price target for Apple shares.
“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 said in a note.
The rally on Tuesday marked a reversal in trends from a day earlier.
Apple closed Monday’s trading session nearly 2% lower after the presentation, with one analyst telling The Post that investors may have been underwhelmed by a lack of in-house AI innovation from the tech giant.
With Post wires