After Apple released its artificial intelligence plan, investors have reignited their confidence in the company.
On June 11th local time, Apple's stock price surged by over 7% after opening, reaching a historic high and the highest daily increase since 2022. It is also the third time in the past three years that the daily increase has exceeded 7%.
On June 12th, Apple concept stocks in Hong Kong and A-shares also saw a significant increase. Hong Kong stock Fuzhikang Group (02038. HK) rose more than 10% at one point, BYD Electronics (0285. HK) rose more than 6%, A-share leaders Yizhi Manufacturing (002600) rose the limit up, Lixun Precision (002475) rose more than 6%, and Lansi Technology (300433) rose more than 4%.
The day before, Apple unveiled a new artificial intelligence feature aimed at revitalizing iPhone demand at the World Developers Conference (WWDC).
Since the beginning of this year, Apple's stock price has been under pressure due to a decline in iPhone sales and concerns on Wall Street that Apple may fall behind other tech giants in the competition to dominate emerging artificial intelligence technologies. But after Apple released its artificial intelligence plan, investors believe that Apple will start a new starting point in 2024.
As of the close of the day, Apple's stock price rose 7.3% to close at $207.15, and its market value increased overnight by about $215 billion, reaching a new high. Apple's market value was $3.18 trillion, second only to Microsoft's $3.22 trillion, and slightly higher than the artificial intelligence chip giant Nvidia's $2.97 trillion.
These three companies are all fiercely competing to become the world's most valuable companies. The last time Microsoft's market value surpassed Apple was in January of this year. Last week, Nvidia's market value briefly surpassed Apple's.
On the 10th, Apple released a series of new artificial intelligence features, including comprehensive improvements to its voice assistant Siri, integration with OpenAI's ChatGPT, a series of writing aids, and new customizable emoticons.
Although Apple's artificial intelligence has not made significant technological breakthroughs, it focuses on applications. Apple has internalized these technologies into various products and launched them for every ordinary consumer. Users need to upgrade their iPhone to use these tools. This may encourage users to purchase new Apple devices.
According to Apple's official press release, "Apple Intelligence" is available for free to users and will only support iPhone 15 Pro, iPhone 15 Pro Max, and iPad and Mac devices equipped with M1 or later chips. Siri and devices must be set to English (in the United States).
According to foreign media reports, at least 13 analysts raised their target price for Apple's stock after the developer launch event. Some analysts said that as Apple prepares to release new phones in the fall, the latest features may encourage a large number of new users to purchase.
Gartner analyst Tuong Nguyen said, "Apple is proving that it is investing in developing its own platforms and devices to achieve the next era of computing, interface, and experience."
Morgan Stanley stated that Apple's artificial intelligence capabilities make the company the "most differentiated consumer digital agent.". These features will prompt consumers to upgrade their iPhones, which should "accelerate the device replacement cycle.".
They said that Apple still needs to launch its first artificial intelligence feature this autumn, but they believe that "the cornerstone for restoring growth and more sustainable excellence is already in place."
Analysts wrote in a report on the 11th, "We are more confident that Apple is in the midst of years of product updates, which supports our rating of Apple and our target price of $216."
Analysts at Bank of America are also optimistic about Apple, stating that these features will accelerate the "upgrade cycle of artificial intelligence smartphones.". Analysts have maintained a buy rating for the stock due to its expected multi-year upgrade cycle, potential for an increase in gross profit margins, and growth in the service industry.
Evercore analysts have expressed "increased confidence" in Apple's artificial intelligence strategy, believing that it will drive users to upgrade their devices. "Limiting Apple's intelligence to last year's iPhone sales has made us more convinced that artificial intelligence can help start the iPhone's super cycle."