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Apple’s AI Investments Bring It to Edge of $4 Trillion Valuation | PYMNTS.com

Dec 23, 2024 - pymnts.com
Apple is approaching a $4 trillion valuation, surpassing Nvidia and Microsoft, driven by investor enthusiasm for artificial intelligence and anticipated iPhone upgrade cycles. The company's shares have risen 16%, adding approximately $500 billion to its market cap. Despite a moderate revenue growth forecast for the fiscal first quarter, analysts expect iPhone sales to recover next year as Apple expands its AI features and geographic availability. Morgan Stanley has named Apple its "top pick" for the upcoming year.

In other developments, OpenAI has expanded ChatGPT integrations with Apple devices, enhancing automation capabilities. Apple is also exploring AI partnerships in China, engaging with Tencent and ByteDance to integrate local AI models, as it seeks to bolster its market presence in the region. This move comes as Apple integrates OpenAI's ChatGPT into its devices, although the chatbot remains unavailable in China, prompting the search for a local partner.

Key takeaways:

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  • Apple is approaching a $4 trillion valuation, surpassing Nvidia and Microsoft, driven by investor enthusiasm for AI and expected iPhone upgrade supercycles.
  • Apple's shares have increased by 16%, adding approximately $500 billion to its market capitalization.
  • Despite a moderate revenue forecast for the holiday season, analysts expect iPhone revenue to recover next year as AI features and geographic availability expand.
  • Apple is exploring AI integrations with Chinese tech giants Tencent and ByteDance to enhance its smartphone offerings in China, amid declining market share.
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