Apple (NASDAQ:AAPL) is investing heavily in AI, and this could serve as the next growth catalyst for the company. During the Q1 2024 conference call, Apple’s CEO, Tim Cook, said that the company is devoting significant time and resources to AI.
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Cook announced his plans to reveal further details about Apple’s ongoing AI initiatives later in the year. Cook added that Gen AI and AI present a huge growth opportunity for Apple.
While Apple will share more details about its AI endeavors later this year, it already incorporates AI and machine learning as foundational technologies in its products. Features like Personal Voice and Live Voicemail rely on AI as a core technology. Additionally, capabilities like fall detection, ECG, and crash detection further highlight the integral role of AI in Apple’s product ecosystem.
Is Apple a Buy or Sell?
Apple stock is under pressure following the release of its Q1 financials, which showed challenges in China, an important growth market for the company. Given the near-term challenges, Wall Street analysts are cautiously optimistic about its prospects.
The stock has gained about 25% in one year. It has 18 Buy, nine Hold, and one Sell recommendations for a Moderate Buy consensus rating. Analysts’ average price target of $205.95 implies 10.22% upside potential from current levels.
