Analysts and the market like the developments Apple: noartificial intelligence, announced at the company’s 2024 Worldwide Developers Conference. So much so that Cupertino shares hit new all-time highs above $207 yesterday.
Apple is promoting AI
Let’s take a step back. As widely expected by the market, during the Worldwide Developers Conference 2024, the annual conference of developers during which the main software innovations of the company are revealed, the Cupertino group was presented. Apple Intelligence, A system for enhancing the functions of iPhone, iPad and Mac with artificial intelligence, the result of an agreement with OpenAI, the parent company of ChatGpt.
Apple noted that All features related to Apple Intelligence will be considered in beta. even when they appear in the final versions of the operating systems in the fall. Apple Intelligence will also only be available for the latest generations On iPhone 15 Pro and iPhone and iPad with an M1 chip or later.
New features include contextual notifications, writing enhancements, image generation and data management via Private Cloud with a strong focus on privacy.
Elon Musk doesn’t like the news
The news of the Apple-OpenAi agreement sent people into a frenzy Elon Musk, who spoke about alleged “unacceptable security breaches”; “If Apple integrates OpenAI at the operating system level, their devices will be banned from my companies,” he wrote in a post on X shortly after the announcement.
Not only that. In a comment following his original tweet, Musk added that the shutdown would not only affect employees, but “visitors must declare whether they own Apple devices before going in, then they should leave them in the Faraday cage.’ The fear is that iPhones with ChatGPT remain associated with OpenAI servers and therefore spying on others in some way, thus compromising the company’s data security. Which would be prevented by a Faraday cage.
Ill South African multi-billionaire, once co-founder of OpenAi Before coming out in 2018, he spent some time working on new technology with himself X-AI:and perhaps intended, as some observers point out, to reach an exclusive agreement with Apple. For analysts, this is probably the real reason for the explosion, beyond the official reasons.
…but gets the blessing of markets and analysts
Apart from Musk’s words, one thing is certain. market and analysts favored Apple’s deal with OpenAI. From experts at Davidson, who upgraded their recommendation from Neutral to Buy with a target price of $200 to $230. Buy ratings too Needham ($220 price target). Experts approve Overweight JPMorgan: ($225 price target) e Morgan Stanley ($216). Experts are more cautious UBS (Neutral, $190), while Barclays reiterated its Underweight rating ($164).
As XTB market analyst David Pascucci writes.
“Apple made a single-handed advance yesterday that single-handedly pulled the Nasdaq to new all-time highs. Throughout the day, we saw correction phases for all major tech stocks except Apple, which recorded one insane performance +7.26% to $207 per share. This performance in absolute terms means a capitalization increased by about 200 billion dollars in one day In trading, we’re talking about another monster market cap increase we’ve seen in the “big” stocks over the past few months. After Nvidia, which justified its increase in market cap with growth prospects, it is now Apple’s turn to rise due to AI innovations in its devices. TO:Apple is now one step away from capitalizing on Microsoft it currently has a capitalization of $3.176 billion compared to Microsoft’s $3.215 billion, numbers that don’t quite match the rest of the world.”
