Apple Stock Surpasses $200 for the First Time
Wall Street Optimistic: "AI Drives Increased iPhone Replacement Demand"
Apple's stock surged more than 7% and reached an all-time high just one day after unveiling its first artificial intelligence (AI) service. This reflects the market's high expectations amid Wall Street's predictions of a surge in iPhone replacement demand to utilize Apple's proprietary AI service.
On the 11th (local time), Apple closed at $207.15 per share on the New York Stock Exchange, up 7.26% from the previous trading day. This marked the first time Apple's stock price surpassed $200, reaching an intraday high of $207.16.
With this sharp rise, Apple's market capitalization exceeded $3.18 trillion, overtaking Nvidia to reclaim the second spot in market value rankings.
As Apple's stock soared, the S&P 500 and Nasdaq indices also rose by 0.27% and 0.88%, respectively, setting new all-time highs.
This strong performance in Apple's stock price is interpreted as reflecting expectations for Apple's AI services announced at the annual Worldwide Developers Conference (WWDC) held the previous day. Apple unveiled its first AI system, 'Apple Intelligence,' which will be integrated across all Apple devices including iPhone, iPad, and Mac, and AI features will be embedded in the operating system iOS as well as newly updated software this year. Apple also announced a partnership with OpenAI to incorporate ChatGPT into its voice assistant, Siri.
Despite this declaration of entering the AI competition, Apple's stock fell 1.91% the previous day amid evaluations that its AI service fell short of market expectations. However, the next day, Wall Street forecasts that Apple's AI capabilities could lead to increased demand for the latest iPhone models, causing the stock to surge over 7%.
Morgan Stanley analyzed, "Apple is strongly positioning itself as the most differentiated consumer digital agent through AI capabilities," adding, "This AI feature will encourage consumers to upgrade their iPhones, accelerating device replacement cycles." They further stated, "Confidence has grown that Apple is at the peak of a multi-year product replacement cycle supporting the investment rating 'Overweight' and target price range of $216 to $270."
The market expects that Apple Intelligence will require specifications equivalent to or higher than the iPhone 15 Pro or iPhone 15 Pro Max for smooth operation. This could significantly stimulate replacement demand for the iPhone 16, expected to be released this fall.
Bank of America (BoA) also predicted that Apple's AI service announcement "will lead to a smart iPhone upgrade cycle enabled by AI usage."
However, skeptical views on Apple's AI service have also been raised.
The U.S. economic daily, The Wall Street Journal (WSJ), commented, "The image search and email/message drafting support demonstrated by Apple the previous day appear similar to features offered by Microsoft (MS) or Google's AI tools," adding, "Apple's AI evolution is not revolutionary. It is questionable how Apple will generate additional revenue."
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