Apple shares hit all-time high after unveiling AI features for iPhone

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Apple shares surged 7 percent on Tuesday as Wall Street expressed hope that the company's newly announced AI plans will drive a new wave of iPhone purchases.

In what Apple CEO Tim Cook billed as a “game changer,” the Cupertino, California-based firm partnered with ChatGPT maker OpenAI and an internal feature called “Apple Intelligence” for its devices starting this fall. Unveiled a partnership with the platform.

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.

The rally comes as a breather for the stock, which has underperformed the benchmark S&P 500 this year, as Apple suffers weak sales of its premium consumer gadgets. Reuters

Only Apple's latest, most powerful devices, such as the iPhone Pro 15 Max and Macs equipped with M-series computer chips, are able to use 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 Dariani said the Apple event left him with “increased confidence” about the company's AI plans.

“Limiting Apple Intelligence to iPhones sold within the last year increases our belief that AI can help kick-start the iPhone supercycle,” Daryanani said in a note to clients. “We are confident in Apple's AI strategy and their ability to deliver GenAI without $10 billion in GPU capex.”

Analysts at Bank of America and Morgan Stanley also hinted in client notes that Apple's AI push could boost iPhone sales, CNBC reported.

Apple's stock gained $180 billion in market value after closing at $207.15.

Analysts said the updated features could encourage a flurry of new purchases. A.P

The stock surge pushed Apple's value to $3.15 trillion, trailing only Microsoft as the world's most valuable company.

The announcements received strong approval on Wall Street, with at least 13 research analysts raising their price targets for the company's stock following the offering.

Wedbush analyst Daniel Ives also reacted sharply to the announcements, 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 phone personalization and LLMs, which should change the trajectory of Cupertino's growth as AI-powered devices begin with iPhone 16.” The iPhone upgrade cycle should be boosted,” Ives said in a note.

Tuesday's rally marked a reversal of trends from a day earlier.

Apple closed Monday's trading session down about 2 percent after the presentation, with one analyst telling The Post that investors may be worried about the tech giant's lack of in-house AI innovation. .

With post wires

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