Apple shares hit all-time high after unveiling AI features for iPhone, other devices

Apple shares surged 6% to a record high in intraday trading Tuesday as Wall Street expressed optimism that the company’s newly announced AI plans will drive a fresh wave of iPhone purchases.

In what Apple CEO Tim Cook billed as a “game changer,” the Cupertino, California-based firm unveiled a partnership with ChatGPT maker OpenAI and an in-house platform called “Apple Intelligence” for its devices beginning this fall.

New features include a major AI overhaul of the Siri voice assistant, a new “Genmoji” system for creating custom images and various AI-powered writing tools.

Only Apple’s newest devices, most powerful devices, such as the iPhone Pro 15 Max and Macs equipped with M-series computer chips, are capable of using the AI features. That sparked predictions of a “super-cycle” of iPhone sales as Apple prepares to launch its next iPhone model later this year.

Evercore ISI analyst Amit Daryanani said the Apple event left him with “increased confidence” about the company’s AI plans.

“Restricting Apple Intelligence to iPhones sold within the last year adds to our conviction that AI can help kick off an iPhone super cycle,” Daryanani said in a note to clients. “We remain confident in Apple’s AI strategy and their ability to deliver GenAI to users without $10s of billions in GPU capex.”