Apple eyes best week since 2021 on hopes for AI iPhone supercycle

Apple investors finally have a roadmap for how the company will use and deploy artificial intelligence — and they’ve responded by pushing the stock toward its best week in more than two years.

Ryan Vlastelica and Carmen Reinicke for Bloomberg News:
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Wall Street is betting that new iPhone AI features — including Apple’s agreement with OpenAI to integrate ChatGPT — will spur a massive upgrade cycle among users who have been holding on to older devices.

Investors have “more confidence that Apple is back in the game, that it has caught up competitively, and that it will see a re-acceleration of growth, given the installed base of phones that will need to upgrade to take advantage of this new tech,” said Jim Awad, senior managing director at Clearstead Advisors. “Apple will be a major beneficiary of AI, and the stock is catching up.”

Wall Street’s top stocks have quickly re-shuffled on AI optimism. Apple on Thursday overtook Microsoft Corp. as the biggest company by market capitalization. Apple was third-largest as recently as Monday, trailing behind $3.2 trillion Nvidia Corp, and Microsoft, which held pole position since January.

The iPhone maker is set for its biggest one-week percentage gain since 2021, climbing to a fresh record high. Since an April trough, the stock has added more than $700 billion in market value. Buy ratings on the stock are near the most since 2017.

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MacDailyNews Take: Because Apple Intelligence is limited to iPhone 15 Pro, iPhone 15 pro Max, and later, it very well could trigger a multiyear supercycle.
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