Apple stock soars after announcement of AI offerings

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Apple shares surged to a new record, closing with a 7.3% increase, driven by positive reactions from Wall Street regarding the company’s recent AI announcements.

The significant rise in stock price reflects investor confidence in Apple’s AI strategy, particularly its potential to boost iPhone sales, which are crucial to the company’s revenue. The new AI features are exclusive to Apple’s most advanced phones, encouraging customers to upgrade.

Ben Reitzes from Melius Research highlighted that older iPhones would become obsolete without AI capabilities. He expressed strong conviction in a “Super Cycle” thesis, predicting iPhone revenue growth of about 20% over the next two years due to AI-driven upgrades.

Apple’s strategy, which integrates AI into its ecosystem, is seen as a powerful move to retain and attract customers. By controlling both hardware and software, Apple continues to create a unique user experience that reinforces customer loyalty.

 

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