Apple’s stock soars thanks to a strategic overhaul. Innovation is at the heart of Apple’s ambition, as it prepares to relaunch its voice assistant Siri. This renewal, aimed at competing with AI giants like OpenAI and Perplexity, promises major transformations. A deep integration of large-scale language models. This initiative will aim to reposition Siri as a true intelligent search engine, capable of answering complex requests. A bold maneuver to assert its place in the market. Faced with increased competition, Apple seeks to reduce its dependence on external partners while boosting its stock valuation.
Apple’s Stocks See Strong Increase
Apple Inc. (AAPL) shares experienced a significant increase of nearly 4% on Wednesday. This development was fueled by a Bloomberg report mentioning Apple’s plan to launch an AI-powered web search tool next year. This new tool, internally referred to as World Knowledge Answers, will integrate with Siri, with prospects for expansion into Safari and Spotlight.
A Revolution for Siri
Apple’s project is part of a long-awaited overhaul of Siri. The voice assistant, often criticized for its management of complex requests, will benefit from significant improvements. The new version will utilize large language models (LLM) to provide more accurate responses, including text, images, videos, and local information. This system, described as a “response engine,” aims to establish Siri as a genuine alternative to ChatGPT or Google’s AI searches.
Strategic Partnerships
To develop this technology, Apple has signed an agreement with Alphabet, allowing it to test Google’s Gemini model in Siri. Although the company is exploring other AI options, including Claude from Anthropic, the partnership with Google appears to offer more favorable terms.
Market Optimism
The prospect of a new AI search tool has been widely welcomed by investors, propelling Apple’s stock to $238.47. This gain marks Apple’s best daily performance in nearly a month. Investors see this push towards AI as an opportunity to drive growth beyond iPhone sales.
Maintaining the Partnership with Google
Simultaneously, a U.S. court has ruled that Apple can maintain its agreement with Google, allowing the latter to remain the default search engine on its devices, with only minor adjustments. This agreement generates approximately $20 billion per year for the company, a reassuring aspect for investors who view the continuity of this partnership positively.
Reducing Dependence on Google
Apple’s decision to develop its own AI search tool indicates a desire to lessen its dependence on Google. This would allow Apple to capture a larger share of the rapidly expanding generative AI market. Indeed, competition in this field among giants like Microsoft and Google continues to intensify.
A Promising Future for Apple
Apple has so far lagged behind its competitors in AI. However, the overhaul of Siri could enable it to close this gap. A successful development of this tool could establish Apple as a major player in the rapidly growing market for response engines.
Outlook for AAPL Stock Purchases
On the TipRanks platform, AAPL shares have received a consensus of Moderate Buy, based on 16 buy recommendations, 11 hold, and one sell. The average price target for Apple is set at $239.36, implying a potential upside of 0.37% from current levels. Since the beginning of the year, AAPL shares have recorded a decrease of about 4.4%.
For additional information regarding Apple’s advancements and updates on artificial intelligence, several detailed articles are available, showcasing the impact of AI across various sectors. Examples include innovations like Apple’s expressive lamp inspired by Pixar here, as well as articles on AI reading here, to contextualize the growing importance of this technology in our daily lives.
Frequently Asked Questions about Apple Stock and Siri Overhaul
How does the redesign of Siri influence Apple (AAPL) stock prices?
The redesign of Siri, which includes a powerful AI-based search engine, has generated considerable enthusiasm among investors. This has contributed to a nearly 4% increase in Apple shares, due to expectations of growth beyond iPhone sales.
What are the main changes planned for the new voice assistant Siri?
The new voice assistant Siri will integrate advanced language models to provide more accurate answers to complex queries, using text, images, videos, and local information.
How does Apple plan to compete with OpenAI and Perplexity through Siri?
Apple aims to transform Siri into a true response engine, capable of competing with OpenAI and Perplexity’s services using advanced technologies such as large language models (LLM).
What advantages does Apple gain from its agreement with Google regarding search?
The agreement with Google as the default search engine generates about $20 billion per year for Apple, providing stable revenue that supports its AI and Siri development projects.
What is Apple’s potential in the AI market after the launch of the new version of Siri?
With the redesign of Siri, Apple could become a key player in the AI market, especially if the new assistant generates a favorable response and attracts users, thereby reducing its dependence on Google.
Is Apple’s progress in AI development sufficient to catch up with Microsoft and Google?
The update of Siri represents a significant step toward closing the gap with competitors like Microsoft and Google, but its success will depend on market acceptance and the effectiveness of its new features.
What impacts could the revaluation of Apple stocks have on long-term investors?
A growing valuation with a solid AI project could bolster long-term investor confidence, signaling that Apple is ready to innovate and diversify its revenue sources.
What is the current position of analysts regarding Apple stocks after these announcements?
Currently, Apple shares (AAPL) display a “Moderate Buy” consensus rating according to TipRanks, indicating a generally positive sentiment among analysts regarding the company’s future prospects.
 shares surge after Siri's AI-powered redesign to compete with OpenAI and Perplexity. Find out why!){kind=link}