Investors who have held onto Apple (NASDAQ:AAPL) stock over the long term have made the right decision. From Warren Buffett to many retail investors, this widely owned stock continues to see broad interest from a range of growth investors and those seeking stability in this uncertain market.
Shares of AAPL stock have surged to around $205 per share today for the first time, making a fresh all-time high. This move was driven by key artificial intelligence-related announcements made at the company’s Worldwide Developers Conference, or WWDC.
Apple announced the launch of Apple Intelligence, an AI platform the company hopes will provide true AI integration into real life. It’s widely expected that this platform will be integrated into the company’s hardware and software products and could lead to the latest upgrade cycle for the iPhone maker.
Let’s dive more into what was announced and why investors are growing so bullish on this mega-cap tech stock today.
AAPL Stock Surges to Record High on AI Enthusiasm
This “Apple Intelligence” upgrade could certainly be compelling for existing iPhone 15 Pro holders and those looking to upgrade to the latest generation phones, iPads and Macs, which will use Apple’s M1 series chips and are set to be released later this year.
It’s anticipation around a future upgrade cycle that’s having analysts upgrading their targets on AAPL stock and investors revising their models. No matter where you sit on the bull or bear discussion around Apple, it’s clear the company’s growth has slowed considerably. If AI can provide the sort of revenue and earnings acceleration investors have been looking for, though, the stock could be fairly valued at current levels.
I’d argue a significant amount of growth is likely baked into Apple’s valuation, given its current multiple of more than 30 times earnings. That said, there does appear to be substance behind these AI announcements and it will be intriguing to see how Apple performs in the quarters to come.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
