Apple’s Stock Rises Amid Anticipation of Artificial Intelligence Integration
Following the release of Apple’s somewhat ambiguous quarterly report in early May, the company’s share prices experienced a considerable uptick beginning in late April. Adding to investors’ optimism are expectations of the integration of artificial intelligence (AI) features into Apple’s ecosystem, developed by tech giants such as Google or OpenAI.
For the current quarter, Apple’s leadership expects revenue to augment by a few percent. The prime anticipation for investors, however, is the WWDC 2024 developers’ event slated for mid-June. Here, new features of the company’s software will be unveiled. Apple is further anticipated to announce collaborations either with OpenAI or Google, as their AI systems can be integrated with Siri, Apple’s voice assistant, or Safari’s search algorithms respectively. OpenAI’s demonstration of the abilities of the new language model GPT-4o earlier this week solidified investor enthusiasm about the impending integration of this technology into Apple services. Google also displayed its own AI advancements this week, thus investors eagerly await fresh news about collaborations with Apple.
Stock Performance and Future Prospects
From the beginning of the year until late April, Apple’s stock prices decreased almost 14%. But, following the release of the quarterly report and news of potential cooperation with OpenAI, the shares rebounded by 12%. Furthermore, investors have been drawn by Apple’s leadership’s declarations of plans to earmark a record sum for the company’s stock buyback. However, former Callesen Wealth Management analysts surveyed by Bloomberg remarked that it is still difficult to quantitatively evaluate the positive influence of AI on Apple’s future revenue growth. Simply implementing new technologies is not enough; they also must be properly monetized.
