Wall Street praised Apple after the iPhone maker debuted its long-awaited artificial intelligence vision during its Worldwide Developers Conference on Monday. Shares of the Tim Cook-led tech company briefly rose as much as 6.4% on Tuesday to a record high, a day after the Apple Intelligence announcement. AI capabilities include OpenAI’s ChatGPT integration and a series of cutting-edge enhancements to Apple’s Siri digital assistant. The event brought positive reviews from analysts, even prompting DA Davidson’s Gil Luria to upgrade the stock to buy. He also raised his price target to $230 from $200, implying a 19% upside from Monday’s close. Apple’s stock has lagged behind major tech companies this year in part because it has not shared clear AI plans. AAPL YTD Mountain Share This Year “We believe yesterday’s presentation coincided with one of Apple’s previous key moments – the transition of digital music from a standalone app to questionable governance (i.e. Napster) to an experience integrated into existing consumer applications (i.e. iTunes),” Luria wrote, noting that the access and trust of Apple’s access to consumer data can drive “deep integration functionality in ways” that other tools cannot. Goldman Sachs analyst Michael Ng is “encouraged by the financial implications” of the announcements, noting that the new product features will help accelerate the iPhone upgrade cycle. Updates also create additional AI monetization opportunities in the future. The upgrades put Apple in a strong position “with the most differentiated consumer digital agency, while limited AI backward compatibility will accelerate regulatory-compliant device replacement cycles.” ours.” [overweight] thesis,” and lay the groundwork for a return to growth, writes Morgan Stanley’s Erik Woodring. Woodring sees the setup for a rapid equipment replacement cycle soon after the event, which should help the stock rise He forecast 227 million units in fiscal 2025, rising to 238 million units in fiscal 2026, saying the day’s news “slightly exceeded” expectations Apple shares rose as much as 6.4% to a record high. Bernstein’s Toni Sacconaghi expects Apple’s new features to not only power the device upgrade cycle, but also boost the industry company achieved earnings per share of $8 and was able to convince investors to pay near the highest valuation of Citigroup stock, analyst Atif Malik called the conference “the best WWDC ever so far”, noting that the plan hinges on Apple’s advantage in hardware and software integration, while maintaining user privacy. The partnership with OpenAI also creates opportunities for Additional AI models in the future. Meanwhile, Evercore ISI’s Amit Daryanani expects Apple’s leadership position in silicon to help it handle inference operations and have a store of user data. will help it provide a “unique” general AI option. Skepticism lingers To be sure, other analysts worry that Apple’s AI prospects may not be enough to make significant upgrades. “Apple Intelligence’s announcement was a bit disappointing compared to our expectations,” wrote UBS analyst David Vogt. “Contrary to consensus, we remain of the view that Apple’s AI strategy will not result in a significant iPhone upgrade cycle this fall.” Barclays analyst Tim Long also poured cold water on the AI announcements, calling them “more of an evolution” and only in line with expectations. “While Apple’s software and support from developers is quite strong, we believe this event is not a catalyst from a stock standpoint, as there is no new hardware,” Long wrote. announced and the software features make no sense.”