Apple has launched Apple Intelligence with new AI-driven features at WWDC, leading to a surge in stock price.

From Nasdaq: 2024-06-18 08:15:00

Apple has recently launched Apple Intelligence, showcasing new AI-driven features for its devices at WWDC. These features include dynamic image generation, enhanced Siri capabilities, and more. This move has fueled a 9.5% increase in Apple’s stock price, making it the world’s most valuable company with a market cap of $3.25 trillion.

Apple’s advantage with Apple Intelligence lies in its massive installed base of 2 billion devices, giving it an edge in deploying generative AI technology. This digital ecosystem is so valuable that companies like Alphabet pay Apple $20 billion annually for Google to be the default search engine on Apple devices. Apple Intelligence aims to drive user upgrades and increase ecosystem engagement.

Apple’s stock price surge post-Apple Intelligence launch raises questions about its valuation. Apple Intelligence is set to debut with iOS 18 this fall, targeting top-tier iPhones. While this technology could boost iPhone demand, the stock’s current price-to-earnings ratio of 33 suggests high expectations. However, Apple’s ecosystem strength makes it a promising long-term investment.



Read more at Nasdaq: Did Apple Just Become the AI Stock to Beat?