Apple Hits Record High as AI Features Drive Potential Boost in iPhone Sales

Apple (AAPL.O) shares surged over 7% on Tuesday, reaching a record high, as the tech giant unveiled new AI features aimed at boosting iPhone sales. This impressive rally nearly allowed Apple to reclaim its position from Microsoft as the world’s most valuable company. The stock closed the day at $207.15, up 7.3%.

Despite lagging behind the S&P 500 (.SPX) in 2024 due to declining iPhone sales and Wall Street’s concerns about Apple’s position in the AI race, the recent announcements have sparked renewed investor interest. Apple’s market capitalization now stands at $3.18 trillion, just shy of Microsoft’s $3.22 trillion and slightly ahead of Nvidia’s $2.97 trillion. The three companies are in close competition to be the world’s most valuable.

Microsoft’s market value surpassed Apple’s in January, and Nvidia briefly took the lead last week. However, Apple’s annual developer event on Monday showcased significant AI advancements, including an enhanced Siri virtual assistant capable of handling more complex queries and tasks, along with several AI features integrated into its apps. These updates will be available with the latest operating systems for iPhones, iPads, and Mac computers.

Following the developer event, at least 13 analysts raised their price targets for Apple’s shares. Many believe that these new features could drive a surge in purchases as the company gears up to launch a new line of iPhones in the fall. “Apple is demonstrating that it is invested in evolving its platform and devices to enable the next era of computing, interfaces, and experiences,” said Gartner analyst Tuong Nguyen.

As Apple continues to innovate and integrate AI technology, the competition for the title of the world’s most valuable company remains fierce.

Following the WWDC keynote on Monday, Apple CEO Tim Cook sat down for interviews with iJustine, SuperSaf, and MKBHD to discuss iOS 18 and Apple Intelligence. Cook also touched on Apple’s partnership with OpenAI and shared his thoughts on some of Apple’s most iconic products, including the Magic Mouse.

Apple’s Partnership with OpenAI and ChatGPT Integration

In his conversation with MKBHD, Cook elaborated on Apple’s collaboration with OpenAI to integrate ChatGPT into iOS 18:

“If you’re working on something that requires world knowledge, beyond personal context, you might want to use one of the large language models on the market. We selected what we feel is the best one with OpenAI and ChatGPT. But you’ll make a conscious decision to do that every time.”

The Future of Apple Intelligence and iPhone Usage

Cook also addressed the potential impact of advanced Apple Intelligence on iPhone usage:

“I think it’s a significant possibility. We’ve never aimed for people to spend their lives on our devices. Our model is about empowering users to do things they couldn’t do otherwise. As things get smarter with Apple Intelligence, tasks that used to take more time will now take less. That opportunity exists.”

Tim Cook on His Legacy as Apple CEO

When asked about his legacy, Cook reflected:

“I don’t think about it. A legacy is defined by others, not by oneself. I focus on the future, not the past. That’s characteristic of Apple—we’re always looking forward. There will eventually be another CEO, and my focus is on making them successful.”

The Magic Mouse and Ergonomics

Addressing a question about the Magic Mouse, Cook commented on its design:

“People may not think of it like the MacBook Air or the iPad, but getting the ergonomics right was key.”

For the full interviews, check out the links below. Stay tuned to 9to5Mac for more updates and insights into Apple and its ecosystem. Follow us on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t miss our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel for more Apple news.