Apple Inc is scheduled to hold annual developers conference on Monday. Ahead of it, the tech stock is up nearly 20% versus its year-to-date low.

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Why does the WWDC matter for Apple stock?

The Worldwide Developers Conference is not typically a stock moving event for the iPhone maker.

But this time could be different considering the much-anticipated AI announcement may steal the spotlight on Monday. According to Dan Ives – a senior Wedbush Securities analyst who currently has an outperform rating on Apple:

 

The Worldwide Developers Conference is a pivotal moment in Apple’s future … and will now start a new AI driven chapter in its growth story for the coming years.

Ives’ $275 price target on Apple (AAPL) stock suggests potential for another 40% upside from here. The tech titan is hosting its annual conference more than a month after it reported its financial results for the second quarter that topped Street estimates (find out more).

The artificial intelligence announcements could be an up to $40 per share of financial benefit for Apple Inc, as per Wedbush’s Dan Ives. Note that Apple shares are currently trading at an all-time high.

Expected AI announcements at Apple WWDC 2024

Erik Woodring of Morgan Stanley expects Apple Inc to announce a new version of Siri at the WWDC that will “formally enter it into the mega-cap Gen AI race”.

Another notable announcement would be related to its recent partnership with OpenAI and the ability of an iPhone to handle AI commands off the cloud, he said in a research note only days ahead of the Worldwide Developers Conference.

Together, such announcements will help Apple stock continue to outperform following the annual conference, Woodring added.

$AAPL is broadly expected to reveal a bunch of other AI updates as well on Monday which will infuse artificial intelligence into apps like safari, mail, messages, and photos. AI-enabled emojis and an upgraded Xcode programming software is also being contemplated.

According to Morgan Stanley’s Eric Woodring, Apple Inc could boost its annual recurring services revenue by up to $8.0 billion if it launches a $5 per month AI-subscription service on Monday.

Other than artificial intelligence, the Nasdaq-listed firm is expected to introduce a new Password app aimed at making signing in more convenient. It may also improve its calculator, health, settings, and calendar apps at the Worldwide Developers Conference tomorrow.

The $3.0 trillion behemoth currently pays a dividend yield of 0.51%.

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