A jump in Apple stock was seen, making it their best day since last May. Apple shares climbed 4.3% on Thursday to a share price of $175.04. It is Apple’s best day since May 5, 2023. The Apple stock price surged 4.3% to $175.04, registering its best day since May 2023, this was after the company transitioned its Mac product line to artificial intelligence-focused chips.
Apple stock jump
The Apple stock jump came during a strong day for technology stocks, especially those in artificial intelligence, as the Nasdaq Composite rose 1.77%.
Apple stock performance this year has been not good and has been down more than 5%. On Thursday, JPMorgan analysts wrote that sentiment over Apple shares is improving with hedge fund investors, partially due to its recent stock slide.
Optimistic investors
Despite some negative trends around iPhone sales in China, and recent reports of canceled projects such as its effort to build a car, JPMorgan analyst Samik Chatterjee said investors may be more comfortable with its current valuation after recent losses and the potential to benefit from AI.
The JPMorgan analysts predicted a strong iPhone sales cycle in 2026 due to forthcoming AI features. Apple CEO Tim Cook recently told investors to expect an AI announcement later this year. That is expected to occur during Apple’s Worldwide Developers Conference event in June.
“Hedge fund investors are increasingly warming up to the opportunity of the AI upgrade cycle, but the uncertainty still pertains to whether the upgrade cycle starts with iPhone 16 in September 2024 or 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 Thursday from Bloomberg. Apple declined to comment on the report. The current generation of Apple’s chips is called M3.
Apple M4 Mac AI integration
The tech giant is reportedly on the cusp of revolutionizing its Mac lineup with the imminent production of M4 computer processors, equipped with cutting-edge AI processing capabilities. Apple is planning to equip every Mac model with this advanced technology.
The reported rollout is slated for late this year and early next year, encompassing a range of updated devices. Upcoming Apple Mac models include new iterations of iMacs, a low-end 14-inch MacBook Pro, as well as high-end 14-inch and 16-inch MacBook Pros, along with Mac minis.
The introduction of these powerful chips heralds a potential revival for the PC industry. Key players such as Intel, Qualcomm, and Nvidia are also gearing up to launch chips tailored for AI tasks, aiming to cater to the evolving needs of consumers.
Apple’s strategy
Apple’s strategy focuses on leveraging the AI processing prowess of the M4 chips, seamlessly integrated with the forthcoming macOS update. While the company has yet to comment on the reports, anticipation is mounting ahead of its annual developers conference in June.
In the backdrop of declining Mac sales, which witnessed a 27% dip in Apple’s recent fiscal year, the introduction of the M4 chips marks a strategic move to reignite interest in the Mac ecosystem. The unveiling of the M3 chips and accompanying MacBook Pro and iMac models last October laid the groundwork for this upcoming technological leap.
