(BFM Bourse) – The Cupertino group would like, according to Bloomberg, to rejuvenate its Mac range with new processors focused on AI. Furthermore, several research firms wrote rather positive notes on the company on Thursday.
Does a swallow make spring for Apple? The apple group in any case posted a notable increase on Thursday, gaining 4.3% at the close. In pre-opening trading this Friday, the company gained another 0.03%.
This is quite simply the strongest increase in one session for the stock since May 5, 2023, almost a year. Enough to put a little balm in the hearts of the shareholders of the company led by Tim Cook. The stock has still lost 9.1% since the start of the year, the second worst performance of the “Magnificent Seven”, after obviously Tesla (-30%).
Difficult to isolate a single explanation for the increase in action on Thursday, which, given the good performance of the Nasdaq (+1.7%), could very well have benefited from cheap buybacks. Jim Reid of Deutsche Bank points out, however, that the Cupertino group’s stock market progress came amid press reports reporting that the company plans to rejuvenate its Mac range.
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New Macs powered by AI
According to Bloomberg, Apple “is preparing to overhaul its entire Mac lineup with a new family of internal processors designed to highlight artificial intelligence (AI).” These new computers could gradually arrive at the end of the year with launches lasting until next year.
These new devices would work with a new “M4” processor, which would itself be available in three versions and which should therefore allow computers to improve both their AI capabilities and their memories.
Asked by Bloomberg, an Apple spokesperson did not comment.
This press information comes at a time when Mac sales are suffering (they fell by 34% over Apple’s last full year) and when the market is punishing Apple for its delay in AI compared to Alphabet. , Microsoft and obviously Nvidia.
The most optimistic observers believe that Apple could turn the tide by unveiling technologies – a new smartphone, new operating systems – enriched with AI. But so far, the group’s lack of announcement to capitalize on AI may have created impatience among investors.
What if the market was wrong about Apple?
Beyond the information from Bloomberg on the rejuvenation of the Mac range, two banks wrote rather encouraging notes on Apple which may have led the market to be more optimistic about the Cupertino group.
Bank of America literally titled its note Thursday, “How Investors Have Historically Got Apple Stock Wrong – Is It Happening Again?”
The American establishment emphasizes that the market has often tended to underestimate the group’s gross margin. This was the case in 2023 (a consensus of 39% for a final figure of 44%) and Bank of America believes investors will make the same mistake in 2024.
This is because Apple would benefit from a greater contribution from its services activities (which include the App store), better margins, better vertical integration, and a more favorable product mix, with customers purchasing more high-end products like iPhone pro.
The bank maintained its buy rating and its price target of $225. She also continues to predict a pronounced “upgrade cycle”, that is to say consumers who will change their iPhones to opt for new models, which would rely more on AI.
For its part, JP Morgan noted, also on Thursday, that hedge funds (investment funds with alternative strategies) were much more confident about Apple, now that the stock has lost ground.
“Hedge fund investors are increasingly sensitive to the AI-related upgrade cycle opportunity, but uncertainty remains over whether (this cycle) begins with the iPhone 16 in September 2024 or with the iPhone 17 in September 2025″, however nuance JPMorgan, cited by CNBC.
Julien Marion – ©2024 BFM Bourse
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