Apple shares surged 4.3% on Thursday, reaching a share price of $175.04, marking the company’s best performance since May 5, 2023. The rise in Apple’s stock price coincided with a strong day for technology stocks, particularly those involved in artificial intelligence, as the Nasdaq Composite climbed 1.77%.
Despite a year-to-date decline of over 5% in Apple shares, sentiment among hedge fund investors is showing signs of improvement, according to JPMorgan analysts. This shift in sentiment can be attributed in part to the recent stock slide experienced by Apple.
Although there have been concerns regarding iPhone sales in China and reports of project cancellations, such as the development of an Apple car, JPMorgan analyst Samik Chatterjee expressed optimism about the company’s current valuation following the recent losses. Furthermore, the potential benefits from the integration of artificial intelligence are seen as a driving force for Apple’s future growth.
The JPMorgan analysts anticipate a robust iPhone sales cycle in 2026, driven by upcoming AI features. Apple’s CEO, Tim Cook, has hinted at an imminent AI announcement later this year, expected to be unveiled during the Worldwide Developers Conference event in June.
Chatterjee highlighted the growing interest among hedge fund investors in the potential of the AI upgrade cycle. However, uncertainties remain regarding whether the upgrade cycle will commence with the release of the iPhone 16 in September 2024 or the iPhone 17 in September 2025.
Additionally, Apple is reportedly gearing up to introduce new Mac laptops and desktops featuring next-generation ‘M4 chips’ that emphasize AI, as per a report from Bloomberg on Thursday. Apple has refrained from commenting on the report, but it is worth noting that the current generation of Apple’s chips is referred to as M3.
Overall, the positive performance of Apple shares, coupled with the growing anticipation surrounding the integration of AI in its products, has sparked renewed interest and optimism among investors, signaling potential opportunities for the tech giant in the near future.
