Apple shares saw a significant increase of 4.3% on Thursday, reaching a share price of $175.04. This marks the best day for Apple since May 5, 2023. The rise came during a positive day for technology stocks, particularly those in the artificial intelligence sector. The Nasdaq Composite also experienced a boost, rising by 1.77%. However, despite this recent surge, Apple shares are still down by more than 5% since the beginning of the year.
According to JPMorgan analysts, sentiment around Apple shares is gradually improving among hedge fund investors. This positive shift can be attributed, in part, to Apple’s recent stock slide. Despite concerns regarding iPhone sales in China and reports of canceled projects such as the development of a car, analysts like Samik Chatterjee from JPMorgan believe that investors may find comfort in Apple’s current valuation following recent losses. Additionally, there is potential for Apple to benefit from advancements in artificial intelligence technology. The analysts at JPMorgan have forecasted a robust iPhone sales cycle in 2026, driven by upcoming AI features.
Apple CEO Tim Cook has hinted at an upcoming AI announcement later this year, expected to take place during Apple’s Worldwide Developers Conference event in June. Hedge fund investors are increasingly recognizing the potential of the AI upgrade cycle. However, there is still uncertainty regarding when this cycle will begin, with questions arising around whether it will start with the iPhone 16 in September 2024 or the iPhone 17 in September 2025. In addition to AI developments, Apple is reportedly gearing up to launch new Mac laptops and desktops equipped with the next-generation “M4 chips” that focus on enhancing AI capabilities. This move signifies Apple’s commitment to staying at the forefront of technological innovation.
Apple’s recent stock performance and strategic initiatives indicate a promising outlook for the company. Despite facing challenges in certain areas, such as iPhone sales and project cancellations, Apple seems poised to leverage advancements in artificial intelligence to drive future growth and profitability. Investors and analysts alike are keeping a close eye on Apple as it navigates the evolving tech landscape and positions itself for success in the years to come.