Apple CEO Tim Cook greets customers as he arrives for the release of the Vision Pro headset at the Apple Store in New York on February 2, 2024.
Angela Weiss | AFP | Getty Images
Apple Shares rose 4.3% on Thursday to a price of $175.04. This is Apple’s best day since May 5, 2023.
Apple’s rise came on a strong day for technology stocks, particularly those in artificial intelligence, as the Nasdaq Composite rose 1.77%.
Apple shares are down more than 5% year to date. On Thursday, JPMorgan analysts wrote that sentiment toward Apple stock was improving among hedge fund investors, in part because of the stock’s recent decline.
Despite some negative trends around iPhone sales in China and recent reports of canceled projects such as building a car, JPMorgan analyst Samik Chatterjee said investors may be more cautious. comfortable with its current valuation after recent losses and the possibility of benefiting from AI.
JPMorgan analysts predict a strong iPhone sales cycle in 2026 due to upcoming AI features. Apple CEO Tim Cook recently told investors to expect an AI announcement later this year. This is expected to happen at Apple’s Worldwide Developers Conference in June.
“Hedge fund investors are increasingly sensitive to the opportunity of the AI upgrade cycle, but uncertainty remains whether the upgrade cycle will start with iPhone 16 in September 2024 or with iPhone 17 in September 2025,” Chatterjee wrote.
Separately, Apple is also preparing new Mac laptops and desktops with next-generation “M4 chips” that emphasize AI, according to a report published Thursday by Bloomberg. Apple declined to comment on the report. The current generation of Apple chips is called M3.
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