Apple Eyes Best Week Since 2021 on Bet AI iPhones Are Must-Haves

Apple Inc. investors finally have a roadmap for how it will use artificial intelligence — and they’ve responded by pushing the stock toward its best week in more than two years.

Wall Street is betting that new iPhone AI features — including Apple’s agreement with OpenAI to integrate ChatGPT — will spur a massive upgrade cycle among users who have been holding on to older devices.

Investors have “more confidence that Apple is back in the game, that it has caught up competitively, and that it will see a re-acceleration of growth, given the installed base of phones that will need to upgrade to take advantage of this new tech,” said Jim Awad, senior managing director at Clearstead Advisors. “Apple will be a major beneficiary of AI, and the stock is catching up.”

Shares of the iPhone maker fell on Friday. At Thursday’s close, the stock was on track to notch the biggest one-week percentage gain since 2021. Since an April trough, the stock has added more than $700 billion in market value. Buy ratings on the stock are near the most since 2017.

apple rallies on ai plan

Wall Street’s top stocks have quickly re-shuffled on AI optimism. Apple on Thursday overtook Microsoft Corp. as the biggest company by market capitalization. Apple was third-largest as recently as Monday, trailing behind $3.2 trillion Nvidia Corp, and Microsoft, which held pole position since January.