Apple is the next mega-cap tech titan to report earnings after the closing bell on Thursday, and Wall Street is looking for answers on the company's AI roadmap.
The iPhone maker's fiscal first-quarter results will be a key update amid investor concerns that it has fallen behind in the AI race. Its partnership with Gemini, announced earlier this month, launched Alphabet stock to a $4 trillion market cap, but the impact on Apple shares has been muted. iPhone and other hardware sales will also be a key focus after Tim Cook said in the previous earnings call that its Q1 would be the best ever quarter for revenue.
Apple heads into the earnings call with shares down about 7% year to date. The results will be published shortly after the closing bell, and the call with analysts will kick off around 5 p.m. ET.
Wedbush says an "AI premium" could soon be priced in
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Tech analyst Dan Ives said to look for updates on Apple's AI strategy.
"With the company finalizing the choice of Google Gemini to back Siri in its AI strategic push, it's time for Apple to lay down the blueprint to accelerate its AI strategy in 2026 which leads up to a much-anticipated Siri refresh this spring and WWDC in June," Ives said in a client note Wednesday, referencing the World Wide Developers Conference.
He thinks the stock could enjoy a big rally if investors start to apply an AI premium, as they have for other firms that have touted involvement in the burgeoning technology.
"We believe no 'AI premium' which could be worth $75-$100 per share is factored into Apple's stock at current prices," Ives wrote.
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