Apple stock went up by over 7.26% after a day of Apple Intelligence getting announced. This also pushed Apple’s market cap to over $3.18 trillion, way clear of NVIDIA’s $2.97 trillion
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After the introduction of Apple Intelligence at WWDC 2024, Apple’s stock price soared to record highs, closing at $207.15 on Tuesday. This marked a significant rebound from Monday’s drop, where the stock fell 1.9% after the first day of WWDC, causing concern among Apple and its investors.
By the end of trading on Tuesday, Apple’s stock had risen by 7.26% from its opening value of $193.65, even hitting a new peak of $206.03 during the day, achieving a 52-week high before closing.
The substantial increase in Apple’s stock price highlights the market’s enthusiastic response to the company’s latest announcements, particularly Apple Intelligence. This new set of features integrates machine learning and generative AI into Apple’s products and services.
Analysts, Apple enthusiasts, and trade experts had eagerly anticipated Apple’s significant move in the AI sector, and judging by Wall Street’s reaction, Apple did not disappoint.
Analysts are especially bullish about Apple Intelligence because it relies on the power of Apple Silicon chips, specifically the A17 Pro for the iPhone. This means it is compatible with Macs produced after late 2020 and the iPhone 15 Pro line, as well as future iPhone models with sufficiently powerful chips. This requirement links the new AI capabilities to Apple’s latest hardware, which could potentially boost sales of newer devices.
Speculation surrounding WWDC 2024 and Apple’s anticipated announcements had already pushed the Cupertino-based tech giant to regain its $3 trillion valuation just six days prior.
As of the time of writing this article, Apple’s market cap stood at $3.18 trillion. Microsoft sits at $3.22 trillion, while NVIDIA lags behind at $2.97 trillion.
Apple’s stock commenced the year at $184.93 and faced challenges in early spring, dropping to $165.00 on April 19 due to concerns over iPhone 15 sales and the absence of a visible AI strategy.
However, Apple’s strong quarterly performance, dividend increase, and significant stock buyback program announced just two weeks later helped reverse this downward trend.
The introduction of Apple Intelligence reassures investors about Apple’s strategic direction and commitment to innovation. By integrating advanced AI capabilities into its devices, Apple not only enhances its product ecosystem but also creates a scenario that should drive demand for its latest hardware.
The positive market response underlines the importance of Apple Intelligence in the company’s broader strategy. As Apple continues to unveil new features and technologies, maintaining this momentum is crucial for sustaining its market leadership and achieving future growth.
The surge in Apple’s stock following the WWDC 2024 announcements also signals investor optimism in companies engaged in or related to AI. The integration of AI across its product line signifies a new chapter for Apple, not just in terms of technology but also in terms of business.
