Apple Stock (AAPL) Soars as Siri’s AI Overhaul Takes Aim at OpenAI and Perplexity
Apple's making its move—and Wall Street's taking notice.
Siri's massive AI upgrade positions Apple to directly challenge OpenAI and Perplexity in the conversational AI arena. The tech giant's late entry suddenly looks strategic rather than delayed.
Investors pile into AAPL as AI narrative fuels momentum
Traders pushed Apple shares higher on the AI announcement, proving once again that adding 'AI' to any press release still works like magic on stock prices. The market's betting that Apple's ecosystem integration will give it an edge where pure-tech players struggle.
Because nothing makes analysts happier than a trillion-dollar company playing catch-up with a two-year-old startup.
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Apple Plans Big Siri Upgrade
Apple’s project is part of a long-delayed overhaul of Siri, which has had trouble handling complex queries. The new version will use large language models (LLMs) to give better answers with text, photos, videos, and local info. Apple calls it an “answer engine” — a tool designed to make Siri a true alternative to ChatGPT or Google’s AI search.
To build this, Apple has struck a deal with Alphabet (GOOGL) to test a Google Gemini model inside Siri. The company is still weighing other AI options, such as Anthropic’s Claude, though Google has reportedly offered more favorable terms.
Market Cheers the Move
The news lifted Apple stock to $238.47, its best one-day gain in nearly a month. Investors see the AI push as a way to spark growth beyond iPhone sales.
At the same time, the company secured a favorable U.S. court ruling this week allowing Google to remain the default search engine on Apple devices. That deal brings Apple about $20 billion a year.
Still, Apple’s decision to pursue its AI search tool shows its plan to reduce reliance on Google and capture more share in the growing generative AI market.
Can Apple Catch Up?
Apple has trailed rivals like Microsoft (MSFT) and Google in AI. But the new Siri, with AI-powered search and a new design, could help close that gap to some extent. If the rollout goes well, Apple may become a key player in the fast-growing “answer engine” market.
For now, investors seem upbeat. The Siri revamp, plus steady income from the Google deal, may boost both Apple’s AI plans and its stock path into 2025.
Is AAPL a Good Stock to Buy?
On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 16 Buys, 11 Holds, and one Sell rating. The average Apple price target of $239.36 implies 0.37% upside potential from current levels. Year-to-date, AAPL stock has lost nearly 4.4%.
