Apple (NASDAQ:AAPL) stock fans will want to keep an eye on the consumer electronics tech giant when Jun. 10 rolls around for a potential inflection point for its shares.
That’s when Apple will host its annual Worldwide Developers Conference online from Jun. 10 through Jun. 14. The five-day event will kickoff with the keynote address at Apple Park. Livestream of the event will be available on Apple’s website, app, Apple TV, and YouTube.
This is one of the most important events Apple holds as it gives its developers insights into the features the company will introduce so they can prepare their apps for the debut. But all eyes will be on the keynote event because that is when Apple reveals the new versions of key products and service enhancements the company will be introducing.
That will be interesting, but all anyone is interested in will be Apple’s pronouncements on artificial intelligence.
What to Expect from AAPL Stock
Considering AI will probably be the focus of CEO Tim Cook’s commentary and the speakers who follow, this will be a significant inflection point for Apple shares. A dramatic revelation about new AI capabilities, software and chips could be the catalyst to send Apple stock skyward.
The tech giant had a phenomenal year last year as one of the Magnificent Seven stocks that carried the stock market to new heights. Its shares gained 48% in 2023. This year, however, Apple stock has been a dud.
Until the latest reports indicated sales in China were gaining ground once again after Cook flew to Beijing last year to meet with its partners and rally them for what’s coming, shares were underwater. Even after AAPL stock surged 17% since then, shares are flat so far this year.
Other AI names are rocketing ahead of the market:
- Nvidia (NASDAQ:NVDA) is up 135% in 2024
- Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is 24% higher
- Amazon (NASDAQ:AMZN) is racing 18% ahead this year
- Even Palantir Technologies (NYSE:PLTR) is jumping 28% higher
In comparison, Apple’s performance has been a disappointment.
AI All Day Every Day
That’s why what Apple unveils about its AI plans will be so important. So what can we expect the consumer products giant to say about this major technological advancement?
Apple has lagged behind everyone in developing AI capabilities and needs to prove it can still make a difference in the space.
It has been negotiating with Alphabet to have Google Gemini fill out the iPhone but recent reports suggest Apple reached an agreement with OpenAI to bring ChatGPT instead. If the latest GPT-4o is adopted it could create a monumental upgrade to the Siri voice assistant.
Bloomberg‘s Mark Gurman suggests the new iOS 18 software will be “one of the biggest iOS updates — if not the biggest — in the company’s history.”
Moreover, both iOS 18 and macOS 15 could handle more tasks by determining whether they are handled on the device or in the cloud. On-device tasks would be supported across the full range Apple products, including the iPhone and iPad via Apple’s M1 chips. Its new M2 Ultra chips would handle the cloud component through data centers.
More to Follow
While talk of artificial intelligence will dominate the discussion, there will be a slew of new improvements everywhere. Cook likes to say these WWDC conferences unveil the latest and greatest generation of its products. WWDC24 will need to deliver the goods for Apple to show it is not being left in the dust.
If the tech star’s announcements underwhelm observers we could see Apple stock crash. I’m not expecting that to happen.
Yet Apple stock is still trading at a premium to historical levels though its price-to-earnings ratio is lower than it has been in the pre-pandemic era. Apple investors could still see a major inflection in the share price if it delivers a home run on Jun. 10.
On the date of publication, Rich Duprey did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
