Apple shares close at record high after company unveils AI software

Apple
shares
closed
up
7%
to
a
new
record
high
of
$207.15
per
share
on
Tuesday,
a
day
after
the
company
announced
its
long-awaited
push
into
artificial
intelligence
at
its
annual

developer
conference
on
Monday.

Apple
introduced
a
range
of
new
AI
features
during
the
event,
including
an
overhaul
of
its
voice
assistant
Siri,
integration
with
OpenAI’s
ChatGPT,
a
range
of
writing
assistance
tools
and
new
customizable
emojis.
The
company
pitched
the
features
as
AI
for
the
average
person,
though
users
will
likely
need
to

upgrade
their
iPhones
to
access
the
tools.

With
Tuesday’s
share
move,
Apple
bested
its
previous
record
from
Dec.
14.
The
company’s
developer
conference
came
as
a
welcome
sign
for
investors
who
have
been
watching
to
see
how
Apple
will
capitalize
on
the
ongoing
AI
boom.

Analysts
from
Morgan
Stanley
said
Apple’s
AI
features
strongly
position
the
company
with
“the
most
differentiated
consumer
digital
agent.”
Additionally,
the
analysts
believe
that
the
features
will
drive
consumers
to
upgrade
their
iPhones,
which
should
“accelerate
device
replacement
cycles.”

They
said
Apple
will
still
have
to
deliver
when
the
AI
features
are
first
available
in
the
fall,
but
they
think
the
“building
blocks
are
in
place
for
a
return
to
growth
and
more
sustained
outperformance.”

“Following
a
WWDC
that
delivered
on
the
key
details
we
were
focused
on
heading
into
the
event,
we
have
even
greater
conviction
that
Apple
is
on
the
cusp
of
a
multi-year
product
refresh
that
underpins
our
OW
rating,
$216
price
target,
and
$270
bull
case
valuation,”
the
analysts
wrote
in
a
note
Tuesday.

Bank
of
America
analysts
were
also
optimistic
about
Apple’s
announcements,
saying
the
features
will
lead
to
“an
upgrade
cycle
for
AI-enabled
IntelliPhones.”
The
analysts
maintained
their
buy
rating
on
the
stock
due
to
the
promise
of
a
multiyear
upgrade
cycle,
potential
for
gross
margin
upside
and
services
growth.

Evercore
analysts
said
they
came
away
from
the
conference
with
“increased
confidence”
in
Apple’s
AI
strategy,
particularly
because
they
believe
it
will
push
users
to
upgrade
their
devices.

“Restricting
Apple
Intelligence
to
iPhones
sold
within
the
last
year
adds
to
our
conviction
that
AI
can
help
kick
off
an
iPhone
super
cycle,”
the
analysts
said
in
a
note
Monday.

—
CNBC’s
Michael
Bloom
contributed
to
this
report