[ad_1]
Now that Apple (AAPL) finally launched its long-awaited spatial computing headset, Apple Vision Pro, investors’ attention is shifting to the company’s upcoming announcements on artificial intelligence, analysts say. That news could be a major catalyst for Apple stock.
x
In a conference call with analysts on February 1, CEO Tim Cook said Apple will share its exciting work in the AI space later this year.
Wedbush Securities analyst Daniel Ives believes Apple will detail its innovations in artificial intelligence at its Worldwide Developers Conference, or WWDC, in June.
“We believe Apple’s ‘Super Bowl moment’ will be when Cook & Co. finally unveils the generative AI technology being worked on in the Apple Park labs and presents it to developers and consumers at WWDC,” Ives said in a note to clients this week.
Apple is likely to add artificial intelligence features to its iPhone 16 line of smartphones this fall, Ives said. That will start a new cycle of growth for Apple, he said.
Ives rates Apple shares as Outperform with a 12-month price target of 250.
Today on the stock market, Apple shares fell 0.5% to 184.15.
Apple is an ‘underrated beneficiary of AI’
An AI-enabled iPhone could shorten upgrade cycles and increase average selling prices, Evercore ISI analyst Amit Daryanani said in a report this week.
If Apple offers the ability to run large language models on the iPhone, the phones would likely require larger memory in the form of DRAM and Nand chips, he said. That would raise phone prices.
Additionally, AI could lead to spectacular new applications for the iPhone, Daryanani said.
“We believe Apple is an underrated beneficiary of AI that will benefit significantly from integrating LLM into its core technology,” Daryanani said.
Siri 2.0 could fulfill its original promise
Apple will use AI to improve its Siri personal assistant software, it said.
“The product (Siri) currently lacks sufficient functionality and a truly capable and reliable virtual assistant would be a game-changer,” Daryanani said. Siri 2.0 could “deliver what virtual assistants promised when they were originally released,” she said.
AI improvements to Apple’s iOS operating system could provide significant improvements to the iPhone user experience, he said. Possible applications include predictive text, automated scheduling and visual search, Daryanani said.
Apple Stock Has Formed a Flat Base
Daryanani rates Apple stock as Outperform with a 220 price target.
In 2023, Apple bought 32 AI startups, more than any other technology company. 9to5Mac reported last week.
Apple stock has formed a flat base with a buy point of 199.62, according to IBD MarketSmith charts. That buy point is also its all-time high, reached on December 14.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Walmart reportedly wants to buy TV maker Vizio. Roku stock falls on the news.
AI Stock Pulls Back After Sharp Rise. Microsoft Copilot reviews are mixed.
Is Apple Stock a Buy After December Quarter Earnings and Vision Pro Launch?
Find Today’s Best Growth Stocks to Watch with IBD 50
See Stocks on the Leaders List Near a Buy Point