Apple turns to generative AI and promises breakthrough innovations

And there's more news on $AAPL+0.0%. I know how popular this company is and there's always something to discuss about it and today I got quite intrigued. As we know, Apple is quite careful not to reveal anything too early and so far, in the "madness" around AI Tim Cook, (Apple's CEO) has held back.

However, a major announcement was made yesterday by $AAPL+0.0%CEO Tim Cook, who revealed the company's extensive investment in AI, signaling a firm commitment to the growing field of generative AI, a trend that has hit the tech industry.

Cook expressed optimism about the transformative potential of generative AI. He stated "We see incredible breakthrough potential for generative AI, and that's why we're making significant investments in this area right now." He highlighted the expected benefits to users and pointed to the potential for improved productivity and problem-solving capabilities.

Apple

AAPL

$189.87 $0.03 +0.02%

Capital Structure

Market Cap

2.9T

Enterpr. Val.

3.0T

Valuation

P/E

29.5

P/S

7.7

Dividends

Yield

0.5%

Payout

15.1%

Open $189.51

Day range $189.22 - $190.81

52 week range $164.08 - $199.62

While Apple has yet to unveil direct competing products to models like OpenAI's GPT or Google's Gemini, Cook tantalisingly hinted that a big announcement will come later this year. "Later this year, I look forward to sharing with you the ways in which we will be opening new horizons in generative artificial intelligence, another technology that we believe can redefine the future," Cook hinted.

Further, Cook reframed several of Apple's already announced products as "powered by artificial intelligence." to emphasize that the company has been working on the technology for several years. Previously, Apple has often used the term "machine learning" instead of artificial intelligence. Cook pointed to current features using Apple's AI technology, including the hand-tracking tool in Vision Pro and heart rate alerts on the Apple Watch. He also highlighted the artificial intelligence capabilities of Apple's chips integrated into MacBooks.

Apple

AAPL

$189.87 $0.03 +0.02%

Target Price

190.69 (+0.43% Upside)

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"A significant part of artificial intelligence is connecting with our users' lives for a variety of tasks from everyday activities to essential functions," Cook explained. "Artificial intelligence allows Apple Watch to assist in tracking workouts, automatically recognizing if you're out for a walk or swimming. It allows your iPhone to call for help in the event of a car accident."

Apple typically unveils new software products and features in June at its annual developer conference, hinting at potential AI-related announcements in the pipeline.

At the meeting, shareholders also rejected a proposal that would have forced Apple to produce a report on the risks of artificial intelligence. The proposal, put forward by the AFL-CIO Equity Index Funds, aims to force the publication of ethical guidelines for artificial intelligence. Apple has opposed the initiative, saying it would reveal trade secrets.

In addition to rejecting the AI report proposal, shareholders approved Apple's board of trustees, welcoming former Aerospace CEO Wanda Austin to replace the departing Al Gore and James Bell. Shareholders also approved auditors and executive pay. Five separate independent shareholder proposals opposing Apple's positions were rejected.

These events underscore Apple's strategic emphasis on AI technology and its commitment to leveraging its potential for future innovation.

The stock has not done well so far relative to other tech giants, Apple has not increased its ATH. However, as always, in my opinion, it certainly hasn't said the last word. Just at the very least those Vision Pro glasses will be interesting to see how things evolve around them. 😊 I'm still holding on to Apple and if it were to drop further, I wouldn't be afraid to even buy. 😊