Apple Stock Soars $112 Billion After Announcing Plans to Use AI in Mac Computers

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The Apple store on Fifth Avenue is seen on January 26, 2016 in New York City. This afternoon Apple reported the slowest iPhone earnings since 2007. Andrew Burton/Getty Images

Recently, Reuters reported that Apple is reportedly gearing up to introduce a new line of Mac computers equipped with M4 processors designed to improve artificial intelligence capabilities. Apple intends to launch these updated computers later this year and in early 2025. The lineup is expected to include new iMacs, a low-end 14-inch MacBook Pro, high-end 14-inch and 16-inch MacBook Pros, and Mac Minis.

Hours after this announcement, Yahoo Finance saw a surge in its stock value, adding a staggering $112 billion in market value. This means the tech giant's move resonated well with investors, leading to a 4.3% increase in its stock price.

Analysts and investors are optimistic about the potential benefits of incorporating AI into consumer hardware, particularly in Apple's flagship product, the iPhone.

Despite recent challenges and a decline in market value, Apple's stock is trading at a discount compared to its peers, making it an attractive option for investors. Hedge funds are increasingly showing interest in Apple, betting on the potential of AI to drive growth.

While some uncertainties remain, particularly regarding revenue growth and margins, analysts anticipate a rebound in sales later this year.

Interestingly, Apple's updated $112 billion market value is higher than its budget allocation for AI, which VCPost reported as $73 billion.

Apple is not the only tech giant expected to work its way around AI. Intel, Qualcomm, and Nvidia also develop chips tailored to AI tasks.

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Apple, AI

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