The AI spotlight turns to Apple (AAPL) Monday as the tech giant kicks off its Worldwide Developers Conference. The buzz around the iPhone maker's big artificial intelligence reveal has pushed Apple stock higher recently.
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Last week, Apple shares rose 2.4% to 196.89, moving closer to a 199.62 cup-base buy point, according to IBD MarketSurge charts.Shares ended Friday at a 2024 closing high, up 2.2% for the year. AAPL stock has rallied 20% from a 52-week low of 164.07 on April 19, largely in anticipation of Apple's plan to play a more prominent role in generative AI.
Apple stock ended the regular session on Monday down 1.9% to 193.12.
Check out the Investor's Business Daily's live coverage.
Update 2:53 pm E.T.
Apple Intelligence Keynote Ends. Stock Down.
While Apple stock has lost some more ground after the WWDC keynote address, Microsoft (MSFT) is still up a fraction with Meta Platforms (META) up 1.5%. Amazon.com (AMZN) and Google (GOOGL) stock are now up more than 1%. Nvidia (NVDA) has pared intraday gains to less than 1%.
Meanwhile, Apple is bringing generative AI to Xcode, its software for developing apps. It will work in a manner similar to Microsoft's GitHub Copilot, which can complete code for programmers automatically.
"This is the beginning of an exciting new chapter in personal intelligence," Federighi said.
However, Apple's AI features will only be available on the current iPhone 15 Pro models and the upcoming iPhone 16 handsets. That's because the AI handsets require more DRAM, or dynamic random access memory. Apple Intelligence also will be available on newer Mac computers.
The WWDC 2024 keynote presentation lasted 1 hour and 43 minutes.
Apple stock was last down nearly 2%.
Updated 2:43 pm E.T
Apple Confirms OpenAI Deal
Apple confirmed a deal with ChatGPT creator OpenAI to tap into broader expertise.
The company has seamlessly integrated its own AI with technology from ChatGPT, Federighi said.
"We also intend to add support for other AI models in the future," he said.
Apple stock is down roughly 1.5%.
Updated 2:33 pm E.T.
Siri, Meet Apple Intelligence
Apple demonstrated how Apple Intelligence is transforming Siri. The new Siri digital assistant is "more natural, contextually relevant and personal." When Siri is in use the borders of the iPhone display glow. That replaces the pulsating circle icon.
Siri better understands what users want and the information they are seeking. Users can access Siri through voice and text requests. Apple said it will be rolling out new Siri functionality over the next year.
The new Siri works between apps. For instance, it can add appointments to your calendar from mentions in text messages and emails. Apple also showed how it can change the tone of an email with a function called Rewrite. For instance, the tone can be professional, friendly or concise. There's also a proof-reading feature.
Apple Intelligence promises to better organize your emails with smart summaries.
Apple stock is now down more than 2%.
Updated 2:14 pm E.T
'Apple Intelligence'
Apple AI will be "powerful, intuitive, integrated and personal," Cook said.
Apple is branding its version of artificial intelligence as "Apple Intelligence." Apple Intelligence will take a hybrid approach that uses both on-device and data center-based AI processing.
Some of the new operating system features announced earlier in the presentation use Apple Intelligence.
Cook called Apple Intelligence a "personal intelligence system."
"This is a moment we've been working towards for a long time," Apple Senior Vice President Craig Federighi said.
Apple stock was down more than 1%.
Updated 2:05 pm E.T.
New MacOS Is Called Sequoia
Plus, Apple is finally bringing a Calculator app to the iPad. A new feature called Math Notes lets users write math problems with the Apple Pencil to solve in the Calculator app.
The company announced a Passwords app to store all of your passwords. The new app will make it easier for customers to log in to websites and apps. The app works across Macs, iPad and iPhone.
Apple announced a Passwords app to store all of your passwords. The new app will make it easier for customers to log in to websites and apps. The app works across Macs, iPad and iPhone. The company also added a function to its Safari web browser than can summarize webpages.
One hour into the webcast and Apple has only hinted at its AI strategy through specific device functions. Apple stock was down roughly 1%.
Updated 1:50 pm E.T
Lots Of New Apple Features
No big AI news yet. But Apple rolled out many new features for its products.
A new "Tap to Cash" function for Apple Wallet allows iPhone users to make secure person-to-person payments.
The Photos app gets new organization features with a major redesign. It makes it easier for users to search for and find photos.The Photos app also shows favorites and collections to relive moments.
Apple's AirPods wireless earbuds now allow people to accept or decline phone calls with a nod or a head shake.
Plus, Apple added an Insight feature for getting details on actors when watching a TV show on Apple TV+. This feature is similar to Amazon Prime Video's X-Ray feature.
The next version of the Apple Watch operating system, WatchOS 11, introduces new activity and connectivity features.
Apple stock was down roughly 1%
Updated 1:28 pm E.T.
How Other AI Stocks Are Reacting
With Apple looking to catch up vs. other tech titans in artificial intelligence, shares of Microsoft (MSFT) and Amazon.com (AMZN) are up a fraction as the Apple event begins. Meta Platforms (META) is up more than 1%. Google parent Alphabet (GOOGL) edged lower. Nvidia (NVDA), a huge beneficiary from megacap techs' AI spending, is up more than 1.5% in in post-split action.
Apple rolled out new products and features, including its next iPhone operating system, iOS 18 and improvements to its iPhone Messages and Mail app.
Apple stock down nearly 1%.
Updated 1:08 pm E.T.
Apple CEO Promises 'Action-Packed' WWDC
Apple Chief Executive Tim Cook kicked off his prerecorded WWDC keynote by promising "an action-packed and memorable WWDC."
"Today we're going to have some incredible updates to our platforms," including intelligence capabilities, he said. Cook started the presentation with a promotion for Apple's streaming video service Apple TV+ and upcoming new shows.
Apple stock was down fractionally at 196.31
Updated 12:57 pm E.T.
Will AI Drive iPhone Upgrades?
Apple stock is still in the red, last down 0.7% with WWDC set to begin.
Wall Street bulls are hoping Apple's AI and iOS 18 announcements will spur accelerated iPhone upgrades. But UBS analyst David Vogt cast doubts about that happening.
In a client note Sunday, Vogt said his firm's recent survey of over 7,500 smartphone users in the U.S., U.K., China, Germany, and Japan showed continued soft iPhone demand. The surveys also showed "muted" interest in AI smartphones.
Reasons for the disinterest in AI smartphones included their expected high price and "concerns around personal privacy," Vogt said.
Vogt rates Apple stock as neutral with a price target of 190.
Updated 12:27 pm. E.T.
Apple Stock On IBD Live: 'How Many Times Can I Say AI To Make My Stock Go Up?'
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Apple stock was still the red ahead of the AI event which was a focus on Monday's IBD Live program. A key question: Is Apple stock a buy amid all the AI buzz?
"How many times can I say AI to make my stock go up?" host Justin Nielsen said. "But this is a real thing, right? With, the potential of adding in device AI."
Updated 11:16 am E.T.
Apple Stock Trades Lower
Apple stock was trading down ahead of the WWDC keynote set to begin in a couple of hours. The shares were last down nearly 1% at 195.41.
The excitement over the event has remained strong. In a note to clients, Wedbush analyst Daniel Ives said WWDC "kicks off a new frontier for Apple," saying it's bound to launch an AI driven accelerated growth cycle on the iPhone and Services that will be the narrative of the Apple story for the coming years."
Updated 11:06 am E.T.
Apple Stock Trades Lower Ahead Of WWDC
Apple stock was last down 0.7% to 195.49 on the stock market today.
Given the plethora of news leaks ahead of the WWDC keynote presentation, there's a risk of "buy the rumor, sell the news" for Apple stock.
Expectations Are High For Apple
"The world awaits Apple's gen AI vision," Monness Crespi Hardt analyst Brian White told clients in a note. "We believe the company's time has finally arrived to showcase new gen
AI experiences across Planet Apple."
Apple's massive reach underscores the importance of its AI offensive. The company has an installed base of more than 2.2 billion devices, including 1.5 billion iPhones.
"I have to believe that Apple will use its vast and captive platform to enable some interesting AI capabilities," Crawford Del Prete, president of research firm IDC, told IBD.
Louis Rosenberg, a leading AI expert and CEO of Unanimous AI, reiterated the view of other analysts, saying that the Apple event will likely focus on Siri, the company's AI-powered digital assistant.
"The single most important announcement from my perspective would be a major overhaul and modernization of Siri, which has never been more than a simple question-and-answer machine," he told IBD. "Apple has had Siri for 13 years and needs to protect their position as the technology leader in this space."
Apple Is Playing Catch-Up In AI
"The timing is critical for Apple," eMarketer analyst Gadjo Sevilla said in a client note. "Nvidia just leapfrogged it as the second most valuable technology company behind Microsoft who is trying to disrupt Apple with its recent Copilot-Plus PC announcements weeks ago."
Graphics-chip maker Nvidia (NVDA) and software giant Microsoft (MSFT) have both seen their valuations rise on AI products and services.
Alphabet's (GOOGL) Google and Amazon.com (AMZN) also have revealed their AI plans recently.
Apple WWDC Keynote Previews
Check out IBD's recent coverage of Apple's AI push:
Will Apple give Siri a brain transplant at WWDC?
Apple's Big AI Reveal: Will The Game Plan Impress Wall Street?
Apple stock is one of the so-called Magnificent Seven stocks.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
IBD editors Ed Carson and Benjamin Pimentel contributed to this report.
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