Jun 12, 2024

Apple’s announcement of new AI tools led to a surge in stock and new all-time highs.

AAPL-Daily-Chart

AAPL – Daily Chart

AAPL shares surged almost 6% on Tuesday after breaking through the previous all-time high at $199.57.

Apple’s announcement of Apple Intelligence at its WWDC conference revealed some familiar tools and new ideas. Apple said its AI tools would be free, but investors are unsure if that will always happen. The new Rewrite, Image Playground, and Genmoji tools will be free and integrated into the iPhone’s OS.

The company also said there would be some ChatGPT integration into iOS 18, which Apple says is “free without creating an account.”

If the current stock price of $205 holds out, Apple will add more than $180 billion to its market value. At more than $3.15 trillion, its market capitalization is now only $40 billion short of Microsoft as the world’s most valuable company. Nvidia is now number three in market value at $2.93 trillion.

Apple has created an impressive bounce from the lows of around $160 in April. At its annual developer event, it announced an improved Siri virtual assistant that can answer a broader range of queries and perform more complicated tasks.

More than 13 analysts raised their price targets on Apple’s shares after the developer event, saying the latest features could encourage a renewal in Apple’s iPhone sales.

However, some analysts were sceptical. “Perhaps there may be enough in the new and improved Siri-powered, intelligently Apple devices to stanch some of the device revenue that’s been haemorrhaging lately, but there isn’t enough to create a new band of followers,” said Forrester’s Dipanjan Chatterjee.

The surge in Apple shares also boosted the Nasdaq 100 tech index, up 0.60%, outperforming the broader S&P 500.

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