Apple is probably shutting down its electric car project in favor of some big bets on artificial intelligence, according to UBS. “While Apple has not announced its AI plans yet, our channel checks increasingly indicate that WWDC (summer of 2024) will unveil the company’s first AI announcement,” wrote analyst David Vogt in a Tuesday note to clients, referrring to the company’s Worldwide Developers Conference. AAPL YTD mountain Apple shares this year The UBS report came after Bloomberg reported on Tuesday that the iPhone maker is reportedly axing its decade-long venture to build an electric vehicle. Among the potential upcoming AI announcements, Vogt is bracing for Apple CEO Tim Cook to debut a new processor in the iPhone 16 supporting AI, and a new AI or large-language model feature on the iOS 18 operating system. UBS also anticipated updates to “Siri” and “Messages” that would enable new features, such as summaries of incoming texts. To be sure, there are some financial downsides to Apple in halting its car venture, Vogt said. That includes the elimination of a potential, global total addressable market of as many as 20 million electric vehicles yearly, plus the benefits of revenue diversification. But Vogt retained his $190 price target, implying 4% upside from Tuesday’s close. Apple’s fallen about 5% this year, lagging many of its megacap technology peers. — CNBC’s Michael Bloom contributed reporting
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
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