After market hours Monday, a researcher initiated coverage of Apple (AAPL 0.48%) stock, and his positive take on the company helped send its shares higher the following day. Apple closed Tuesday 0.6% in positive territory in a trading session that saw the S&P 500 index decline by 0.1%.
All about the AI
The analyst behind the move was Bernstein SocGen Group's Mark Newman, who launched his Apple tracking with a recommendation of outperform (buy, in other words). The pundit set his price target at $290, anticipating upside of 22% on the high-profile tech stock's most recent closing stock price.
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According to reports, Newman was most encouraged by Apple being something of a quick pathway to artificial intelligence (AI) takeup for users. The company's latest iPhone models, for example, are packed with easy-to-use and device-native AI technology. The Bernstein analyst wrote that this provided quicker access to AI functionalities.
On the flip side, Newman cautioned that Apple could suffer if AI integration and implementation are not managed effectively. Customers could defect to other device makers.
NASDAQ: AAPL
Key Data Points
The fruits of successful integration
That's a somewhat offbeat take on Apple. Of course, like any large tech company, it's trying hard to wed AI functionalities to its hardware and software, but for the most part it isn't renowned as an AI company. But this technology is pivotal for future success. As Newman wrote, Apple will need to integrate it well.
