***le Inc.'s (NASDAQ:AAPL) long-awaited unveiling of its AI strategy at the Worldwide Developers Conference (WWDC) 2024 has Wedbush's Dan Ives excited.
What H***ened: The "AI Revolution" has finally arrived in Cupertino, according to Ives after ***le laid out its AI strategy at WWDC 2024.
The news was initially met with a delayed but positive reaction from investors, who are now beginning to grasp the potential impact of this move on the consumer market.
Ives believes ***le's AI strategy is expected to trigger a significant upgrade cycle for the company, with an estimated 270 million iPhones in the global installed base not h***ing been upgraded for over four years.
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Additionally, the development of AI-based ***s on ***le's platform is predicted to create a new AI *** Store, fundamentally changing how consumers interact with generative AI while creating a new revenue stream for ***le.
Ives reiterated his belief that ***le's massive consumer base gives it a unique advantage to capitalize on the AI Revolution.
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Looking ahead, Ives thinks that the race to a $4 trillion market capitalization in the tech industry is expected to intensify, with Nvidia Corp. (NASDAQ:NVDA), Microsoft Corp. (NASDAQ:M***T), and ***le taking the lead.
Ives likened Nvidia's GPU chips to gold or oil but noted that ***le's AI announcements will trigger a "long-awaited super cycle in Cupertino" with 270 million iPhones that h***en't been upgraded in the last four years being the prime candidates for an upgrade now.
Why It Matters: The AI features unveiled by ***le at WWDC 2024 h***e been predicted to drive growth beyond current estimates by Gene Munster, the managing partner at Deepwater Asset Management. Munster suggested that these features could prompt ***le's user base to upgrade their hardware more frequently, potentially exceeding estimates over the next few years.
Ives also praised ***le's venture into AI, calling it a game-changer. He believes that the company's announcements related to ChatGPT-parent OpenAI and privacy, among others, h***e set a strong foundation for developers.
However, not all ***ysts are convinced. Despite lauding ***le's AI and ecosystem integration advancements, ***yst Ming-Chi Kuo indicated that investors are seeking more substantial developments.
Price Action: ***le shares surged to a record-high on Wednesday after DA D***idson upgraded the stock, following a series of announcements at WWDC. ***le's shares were trading 3.14% higher at the time of writing, at $214.18, 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.
Photo courtesy: ***le
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