Apple sets fresh intraday high on AI updates, reported chip colalb

Apple (AAPL) hit a record intraday high on Wednesday after announcing new artificial intelligence (AI) features amid a reported chip partnership with Broadcom (AVGO), according to reports from The Information. Intelligent Alpha founder and CEO Doug Clinton joins Asking for a Trend Host Josh Lipton to take a closer look at what sent Apple stock higher and where the iPhone maker stands in the AI era.

Clinton says there are two things driving Apple stock higher. He explains, “First of all, I think the Magnificent Seven in general, we’ve had a pretty good period really since the election. We got past sort of the uncertainty about direction right at the top level for the country.”

“The second piece is specific to Apple. If you look at their business, I think that the iPhone numbers, and investors seem to realize this, for next year, are kind of de-risked. I mean, expectations are low… There’s really no expectation for AI adding much of anything to Apple over the next year.”

On the reports of Apple working on a chip, Clinton says “Any company that is playing in the AI space that has over $1 billion market cap, we think, they have to develop their own silicon. It’s just a matter of time for any of those companies who aren’t doing it. Apple was obviously always involved in making their own silicon for their devices. Now, they’re bringing that into the server and doing it for their particular use case in AI. I think it’s a smart move by them, somewhat predictable, but it also shows, I think, that they are serious about AI.”

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This post was written by Naomi Buchanan.