Earlier this afternoon, Apple (AAPL) unveiled its latest iPhone model to the world. Though, for its part, the world was largely unimpressed. And Apple stock dropped more than 1% after the iPhone 16’s debut.
But while Wall Street wasn’t roused by these latest developments, we were. In fact, we think today’s announcement helps to set the stage for a massive boom in certain AI stocks over the next few months.
That’s because it confirmed that Apple Intelligence – a truly capable and useful AI – will soon be in the very palms of our hands. And we think this new AI has the potential to fundamentally reshape the world.
That is, given the iPhone’s global proliferation, we think Apple Intelligence will serve as an “on-ramp,” allowing most folks to incorporate AI into their everyday lives on a brand-new level.
Just look at some of the things Apple teased about this breakthrough.
What Stood Out in Apple’s ‘Glowtime’
Let’s start with the basics: hardware.
At the iPhone 16’s core is Apple’s new A18 chip, a significant leap from the A16 Bionic. The A18 offers 17% more system memory bandwidth. Not to mention, it’s up to 30% faster than the iPhone 15’s CPU and 60% faster than the iPhone 12’s, all while being more energy-efficient.
This powerful chip is one of the driving forces behind Apple Intelligence (which will be available in full later this year.) The AI integrates writing tools throughout iOS, with the capability to rewrite notes, adjust message tones, even create new emoji by merely typing a description.
Additionally, it seems that Apple Intelligence will make Siri… you know… actually useful. Siri will now leverage it to take hundreds of new actions in users’ apps. And this AI system will help Siri to be more natural and contextually relevant, able to understand richer language, and provide step-by-step guidance. Indeed, as we heard during the ‘Glowtime’ keynote, “you can say things like, ‘send Erica the photos from Saturday’s barbecue,’ and Siri will find the photos and send them.”
There’s also Apple’s new Visual Intelligence. With this introduction, iPhone users can use their camera to learn all about their surroundings, in an instant. Visual Intelligence can provide information about restaurants, events, creatures, objects, and more – all while maintaining users’ privacy. That’s because Apple’s AI system uses on-device processing and private cloud computing to preserve security.
These are all intriguing, let alone useful, features. I know I’ll probably be using Apple Intelligence often to help find new music, write emails, catch up on the news – and definitely to make fun emojis to send to my friends.
I bet you will, too. And so will hundreds of millions of people across the globe.
To that end, Apple Intelligence could set everyone on the path to AI.
A Journey Toward Great AI
As the old saying goes, the journey of a thousand miles begins with a single step.
With its breakthrough Apple Intelligence, Apple has now officially embarked on that journey.
The company will take many more steps over the coming months. And we think that when the journey is complete, Apple Intelligence may be the most transformative AI on the planet.
As you may know, great AI is like a great car – it needs a powerful engine and a lot of fuel. When you think about all the data your iPhone collects every day – your Spotify or Apple Music streams, YouTube views, news feeds, messages – it’s clear that Apple has the fuel.
And now, thanks to its partnership with OpenAI, Apple also has the engine: OpenAI’s powerful AI models.
So, with Apple’s abundance of data and OpenAI’s models, Apple Intelligence is equipped with the most fuel and the best engine in the AI Race. That’s why I think Apple Intelligence could, in time, become the world’s best AI.
Regardless, Apple’s long-awaited entry into the AI Race marks a huge moment for the industry.
Microsoft, Amazon, Nvidia, Tesla, Alphabet, Meta – they’ve been all-in with AI for several months.
Now, following Apple’s arrival, all of the world’s most important tech companies are all-in with AI…
…Which means you probably should be, too.
The Final Word
However, you won’t find exponential gains in Apple stock. After all, AAPL ticked up just 0.04% today after unveiling its new iPhones and Apple Intelligence.
In fact, all major tech giants are now fully committed to artificial intelligence. Their stock prices are also valued for this reality.
But here’s the thing: This widespread AI adoption coincides with a rare economic event that has historically preceded significant market rallies.
Because of this, a major tech reversal is likely to take place very soon. And it could very well send some stocks to the moon – but it won’t be the Big Tech companies you know and love.
That’s why, on Wednesday, Sept. 11, at 8 p.m. EST, I’ll be hosting an emergency strategy session to discuss this imminent reversal in tech stocks.
The last time the market saw this event, you could have scored extraordinary returns, such as in the following stocks:
- AutoNation: $5,000 → $25,750
- Castellum: $5,000 → $32,500
- Viavi Solutions: $5,000 → $52,500
And in just two days, I’ll be sharing everything you need to know about it – as well as how to potentially profit from it.
Reserve your seat to that strategy session now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.
