Apple Signal of AI Intent Unleashes $112 Billion Stock Surge

The stock market has punished Apple Inc. this year for failing to offer a vision of where its future growth will come from. The shares caught a bid Thursday after the tech giant took a step toward providing an answer.

Apple’s decision to overhaul its Mac computer line to focus on artificial intelligence, as reported by Bloomberg, struck a chord with investors, sending the stock up 4.3% and adding $112 billion in value in its best performance in nearly a year.

“Any announcement that pushes AI into consumer hardware could be very beneficial for Apple,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. “However, the impact is yet to be determined.”

That will be key for assessing whether this latest rally can be sustained. Before Thursday’s announcement, the stock was down 15% from its record high set in December, wiping out more than $460 billion in market value. Trading close to its cheapest level in about a year, bargain-hunters clearly could justify taking a chance on Apple’s latest stab at AI relevance.

Apple Near Cheapest Level in Over a Year

Sustaining this momentum, however, will depend on Apple’s ability to deliver on the promise of growth. For the Cupertino, California-based tech giant, that likely means getting AI into the iPhone.