Apple's ( AAPL ) stock rose as much as 6% on Tuesday to hit an intraday record as investors digested the announcement of its AI platform, Apple Intelligence.
After the stock fell on Monday during and after the company's WWDC conference, some Wall Street analysts cheered the company's announcements.
Gil Loria, managing director at DA Davidson, told Yahoo Finance (video above), “If you look at the signal away from the noise, you'll realize that this is an unprecedented capability that Apple is going to introduce and that AI is going to be integrated into everyday life.”
After Monday's event, Loria upgraded Apple to buy from neutral and raised his price target to $230 from $200.
On Monday, Apple announced “Apple Intelligence,” a long-awaited entry into the creative AI space. The company said the platform will be integrated into the company's hardware and software products, ranging from iPhone and Mac to mail, messages and photos. Apple Intelligence will be available for iPhone 15 Pro and iPads and Macs running Apple's M1 series chips and newer later this fall.
Key launch features include updates to Siri, which will now be able to, for example, parse the phone for addresses sent in messages or photos in the phone's photo library based on voice prompts. will be able to find Apple also launched new software updates for its iPhone, watches and computer products.
“Our experience with consumer surveys from previous generations of iPhone launches tells us that the hardware upgrade cycle is driven more by the combination of feature upgrades across diverse applications, which overall will drive upgrades over the next few years. will provide reasons to do so.” JP Morgan senior analyst Smek Chatterjee wrote in a note to clients on Monday.
“The release of AI features in Macs, iPads and iPhones will support the upgrade cycle across devices,” he added.
The announcements ended a month of excitement for the stock as some news had already been rumored, including a partnership with ChatGPT operator OpenAI.
After being briefly overtaken by Nvidia (NVDA), the iPhone maker's stock is now back as the second most valuable company in the world (behind Microsoft) with a market capitalization of more than $3.1 trillion.
After a slow start to the year amid fears of slowing iPhone demand, Apple's stock is now up more than 15 percent in the past two months. Analysts like Luria and Chatterjee believe that the next iPhone upgrade cycle could be on the horizon as the new AI features are only coming to the iPhone 15 Pro and later generations.
“As people buy new phones this holiday season, they're going to see this amazing functionality,” Loria said. “They're going to show their friends and family and the product upgrade cycle will happen over the next few months and quarters.”
Luria argued that this should be a key catalyst for the stock moving forward.
“The stock has been flat because earnings haven't grown at Apple,” Loria said. “Now, we think that will allow Apple's overall growth to accelerate from low to mid-single digits, maybe high single digits over the next year or two.
Josh Shaffer is a reporter for Yahoo Finance. Follow him on X. @_joshschafer.
Click here for the latest stock market news and in-depth analysis of stock price movement events..
Read the latest financial and business news from Yahoo Finance