Apple shares soar
Apple’s shares rose to a record-high for this year, following its AI announcements at its annual conference
After an initial drop on Monday, Apple’s shares rose by 7% on Tuesday–reaching a record-high for the first time in 2024–following the keynote speech at its Worldwide Developer Conference (WWDC) where it announced some highly-anticipated AI updates. This surge in share prices has boosted it back up to being the second-most-valuable company (behind Microsoft) in the world, with a market capitalization of more than $3.1 trillion.
Why have Apple’s stock prices surged?
During the opening keynote speech at the WWDC, Apple confirmed its partnership with OpenAI, bringing ChatGPT functionality to Apple devices. It also introduced its Apple Intelligence platform that will power its AI features, which include an enhanced Siri, which can better understand context, perform more tasks, and connect with ChatGPT (with user permission) to answer broader questions. They also teased new AI-powered writing features and customizable emojis, and what iOS 18 will bring.
These new AI features, although not their typical ‘flashy’ announcements, have given investors confidence.
They believe that the “building blocks are in place” as it positions itself as a “differentiated consumer digital agent” with new AI features that will “drive consumers to upgrade their iPhones, which should “accelerate device replacement cycles”, which means “a return to growth and a more sustained outperformance.”
