Apple CEO Tim Cook greets customers as he arrives for the Vision Pro version of the headset at the Apple Store in New York City on February 2, 2024.
Angela Weiss | AFP | Getty Images
apple Shares rose 4.3% on Thursday to a share price of $175.04. It's Apple's best day since May 5, 2023.
Apple's rise came during a strong day for technology stocks, especially those related to artificial intelligence, as the Nasdaq Composite Index rose by 1.77%.
Apple shares are down more than 5% so far this year. On Thursday, JPMorgan analysts wrote that sentiment on Apple shares is improving with hedge fund investors, in part due to a recent decline in its shares.
Despite some negative trends around iPhone sales in China, and recent reports of canceled projects such as its efforts to build a car, Samik Chatterjee, an analyst at JPMorgan, said investors may be more comfortable with its current valuation after recent losses and the potential to benefit from artificial intelligence.
JPMorgan analysts have predicted a strong sales cycle for the iPhone in 2026 due to upcoming artificial intelligence features. Apple CEO Tim Cook recently told investors to expect an AI announcement later this year. This is expected to happen during Apple's Worldwide Developers Conference event in June.
“Hedge fund investors are increasingly bracing for the opportunity of an AI upgrade cycle, but uncertainty remains as to whether the upgrade cycle will begin with the iPhone 16 in September 2024 or the iPhone 17 in September 2025,” Chatterjee wrote.
Separately, Apple is also preparing new Mac laptops and desktops with next-generation AI-focused “M4 chips,” according to a Thursday report from Bloomberg. Apple declined to comment on the report. The current generation of Apple chips is called the M3.
