Apple (AAPL) shares rose as much as 6% to hit an intraday record high on Tuesday as investors digested the company’s announcement of its AI platform, Apple Intelligence, marking the first time Apple has hit an all-time high in 2024.
The stock price fell on Monday during and after the company’s WWDC conference, but rose after some Wall Street analysts welcomed the company’s announcement.
“If you cut through the noise and look at the signal, this is an unprecedented feature that Apple is introducing as it seeks to integrate AI into everyday life,” Gil Luria, managing director at DA Davidson, told Yahoo Finance.
After Monday’s event, Luria upgraded Apple’s stock rating to buy from neutral and increased his price target to $230 from $200.
Apple on Monday unveiled its long-awaited foray into generative AI: Apple Intelligence. The company said the platform will be integrated across its hardware and software products, from iPhones and Macs to Mail, Messages and Photos. Apple Intelligence will be available on the iPhone 15 Pro later this fall, as well as iPads and Macs with Apple’s M1-series chips and later.
Key features of the announcement included updates to Siri that will allow the phone to, for example, parse addresses sent in messages and search for photos in the phone’s photo library based on voice prompts. Apple also announced new software updates for its iPhones, watches and computer products.
“Our experience researching consumers around previous iPhone launches shows that the hardware upgrade cycle is driven by a series of feature upgrades across different apps, which collectively provide a reason to upgrade over the next few years,” JPMorgan senior analyst Samik Chatterjee wrote in a client note on Monday.
He added that “once AI capabilities are released for Mac, iPad and iPhone, they will be supported with upgrade cycles across all devices.”
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