Apple Inc. AAPL is expected to reveal its artificial intelligence strategy at the Worldwide Developers Conference or WWDC, a move that could significantly boost the company’s stock, according to a prominent analyst Dan Ives.
What Happened: On Friday, Ives, an analyst at Wedbush, appeared on Schwab Network and shared his insights on Apple’s future predicting that the unveiling of Apple’s AI strategy at the WWDC 2024 could be a pivotal moment for the tech giant.
“Well, I think that’s where [Tim] Cook is gonna unveil the AI strategy… the start of the AI app store, and this is gonna be so important as AI now comes to the Apple ecosystem. And I think this is gonna be a watershed moment for Apple,” Ives said.
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Despite recent soft numbers, Ives remains optimistic about Apple’s future, stating, “I don’t view it quarter by quarter. I deal with here is it six, nine, 12, 18 months from now.” He then predicted Apple stock going “massively higher” from here and offered $250 as the price target.
Why It Matters: Ives’ statement comes at a time when Apple’s key supplier, Foxconn, reported a 9% decline in its first-quarter revenue for 2024. Despite this, Foxconn is anticipating growth in the second quarter, attributing it to the AI revolution.
Apple has also been in the news for cutting 600 jobs after discontinuing its car and display projects. Additionally, analysts have been speculating about Apple’s potential entry into the personal home robot market, with differing opinions on the matter.
Previously, Ives said, “It would be a horror show if they actually spent money on robots,” noting that Cupertino should focus on AI because “If they went after robots, that would be a black eye moment for Apple.”
Price Action: Apple shares closed 0.45% higher at $169.58 on Friday, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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