Apple Shares Zoom 7% After New AI Feature Announcements

Apple shares soared over 7 per cent to a record high of USD 207.15 on Tuesday, nearly reclaiming its position as the world’s most valuable company from Microsoft. 

The rally came on the heels of Apple’s announcement of new artificial intelligence features designed to boost demand for its flagship iPhones. This rise in stock value has brought Apple’s market capitalisation to USD 3.18 trillion, positioning it just behind Microsoft, which stands at USD 3.22 trillion and ahead of AI chip leader Nvidia at USD 2.97 trillion.

Despite trailing the S&P 500 in 2024 due to declining iPhone sales and Wall Street’s concerns about Apple’s position in the AI technology race, the company’s latest advancements have reinvigorated investor confidence. 

At its annual developer event on Monday, Apple introduced an enhanced Siri virtual assistant capable of handling more complex queries and tasks. Additionally, several AI features were unveiled for its apps, set to be included in the upcoming operating systems for iPhones, iPads, and Mac computers. Many analysts believe these new features could spur a wave of new purchases as the company gears up to launch a new line of iPhones in the autumn. 

(Inputs from Reuters)