Apple Shares Are Back to Winning Ways as AI Optimism Builds

After a period of underperformance, Apple Inc. shares are rebounding, driven by strong earnings and the largest stock buyback in U.S. history. The stock has nearly recovered from a 14% drop earlier this year, fueled by excitement over potential AI advancements with OpenAI's ChatGPT in upcoming iPhone updates.

Apple's AI strategy, while still largely undisclosed, could significantly boost its product cycle, drawing customers to new iPhones and additional services. Talks with Alphabet about integrating Google's AI into the iPhone are also ongoing, highlighting Apple's strategic approach to incorporating existing AI technologies rather than building from scratch. The company looks forward to revealing more at the Worldwide Developers Conference on June 10.