Apple's stock surged over 7% on Tuesday, reaching a record high and closing in on Microsoft's position as the world's most valuable company. This surge came after Apple unveiled new artificial intelligence (AI) features at its annual developer event, fueling optimism about a potential resurgence in iPhone demand.
Despite trailing the S&P 500 in 2024 due to slowing iPhone sales and concerns about its AI strategy, Apple's latest announcements appear to have assuaged investor worries. The company showcased a significantly improved Siri virtual assistant with expanded capabilities and introduced several AI-powered features across its operating systems.
Ending the day at $207.15 per share, Apple's market capitalisation reached $3.18 trillion, narrowly trailing Microsoft at $3.22 trillion and surpassing AI chip giant Nvidia at $2.97 trillion. This tight race underscores the intense competition among tech behemoths for market dominance.
Analysts responded favourably to Apple's announcements, with at least 13 raising their price targets for the company's stock. Many believe that these new AI features could drive a wave of upgrades and new purchases when Apple launches its next generation of iPhones in the fall.
Gartner analyst Tuong Nguyen remarked, "Apple is demonstrating that it is invested in evolving its platform and devices to enable the next era of computing, interfaces and experiences." This sentiment reflects a growing confidence that Apple is actively positioning itself to be a major player in the rapidly evolving landscape of AI.
Jaspreet Bindra, Founder of Tech Whisperer commented, "It seems that every company needs Vitamin AI for its stock to soar in the markets. Apple's stock price jump can be attributed to three factors: 1. The announcements around its OpenAI alliance and Apple Intelligence, something that every analyst and investor was clamouring for 2. The fact that Apple had a very coherent strategy of infusing AI into its core offerings in the iPhone and made it easy to understand, relatable, and relevant 3. Most of all the fact that this will help Apple bring out an 'AI Phone' and potentially offer $1000+ devices. The market recognises that Apple, with its distribution might and cult consumer following, has truly brought Edge AI into the market."