Apple’s WWDC 2024 Sneak Peek: Generative AI Strategy With Privacy Focus – Apple (NASDAQ:AAPL)
June 3, 2024 10:18 AM | 2 min read
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As Apple Inc (NASDAQ:AAPL) gears up for its highly anticipated Worldwide Developers Conference (WWDC) on June 10-14, 2024, investors are buzzing with excitement over what the tech giant has in store.
Goldman Sachs analyst Michael Ng, CFA, has provided a sneak peek into what we can expect, particularly focusing on Apple’s AI strategy.
Ng has set a bullish 12-month price target of $226.00 for Apple stock, representing a 17.6% upside from its current price of $192.25. This optimism is driven by the belief that Apple’s AI features, combined with other ecosystem investments and hardware upgrades, could increase upgrade rates and drive upside to product estimates.
Apple’s Gen AI Strategy
One of the key highlights of WWDC 2024 will be Apple’s showcase of its generative AI strategy. Apple is expected to embed generative AI tools within its core applications like Safari, Photos, and Notes. This move is aimed at providing practical tools for users and leveraging a combination of on-device and cloud processing, Ng says.
While competitors like Galaxy S24 and Pixel 8 offer similar AI features, Apple’s differentiation lies in the availability of AI features across its entire suite of products and its focus on consumer privacy.
Apple’s longstanding investment in iOS and other device operating systems is aimed at growing its installed base and minimizing churn.
Partnership with OpenAI
Apple’s collaboration with OpenAI to power an AI chatbot further highlights its commitment to AI innovation. This partnership, while beneficial to both parties, limits the ability of OpenAI to monetize through premium subscriptions or advertising, thereby enhancing Apple’s competitive position in the AI space.
Apple is also ramping up production of its M2 Ultra processors, which will be used in its AI servers, with data center capacity doubling, according to SemiAnalysis.
As Apple continues to innovate and differentiate itself in the AI space, investors can expect exciting developments at WWDC 2024. With a strong focus on generative AI and its impact on user experience, Apple is poised to maintain its position as a leader in the tech industry.
Photo: Shutterstock
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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