Apple stock returns to winning ways as AI optimism builds
Apple stock has nearly erased its year-to-date drop with recent gains as investor hopes for a major AI event ratchet up in the lead-up to Apple’s Worldwide Developers Conference (WWDC) starting June 10th.
Jeran Wittenstein and Ryan Vlastelica for Bloomberg News:
After months of struggles, Apple Inc. is looking a lot more like the stock market leader it used to be.
The iPhone maker’s shares are on pace for their best month since March 2023. They’ve gained almost 12% after a strong earnings report showed growth is returning and the company also announced the biggest stock buyback in US history, a sign of its financial might.
In addition, there is growing excitement about its artificial intelligence plans. After being down as much as 14% this year, the stock is close to erasing those losses.
The latest leg of the rally came after a Bloomberg report that Apple is closing in on a deal with OpenAI to use ChatGPT features in the new iPhone operating system. That had greater resonance after OpenAI on Monday showed off a faster and cheaper version of the AI model that underpins ChatGPT, including a demonstration of new voice features.
The demo showed the potential for AI-infused digital assistants, and such features could juice revenue growth for Apple by compelling customers to buy new iPhones and pay for more services, according to Ken Mahoney, chief executive officer at Mahoney Asset Management. He’s more convinced than ever that “AI will result in Siri on steroids,” he said.
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MacDailyNews Take: We’ve been sold a bill of goods regard a “better Siri” way too many times, so we’ll believe it when we see it.
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