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That sprinkle of pixie dust has made chipmaker Nvidia the
world's second-most valuable company after Microsoft, which in
turn has seen its own shares rise 30% in the last 12 months,
leaving Apple in the number three spot.
So when loyal fans - and tech analysts - around the world
gathered to watch Apple's annual Worldwide Developers Conference
(WWDC 2024) on Monday, it was with the expectation of seeing a
dazzling array of AI features that would put the iPhone maker in
good standing to compete in this area with market-leader
Microsoft.
In a nearly two-hour long presentation, CEO Tim Cook, along with
a string of other execs, unveiled how the new "Apple
Intelligence" technology will be folded into the existing suite
of apps including Siri, along with OpenAI's chatbot ChatGPT.
Wall Street offered a tepid response. Shares in Apple fell
around 2% in regular trading and are drifting in this morning's
premarket, down around 0.5%.
Tesla boss Elon Musk said on X he would immediately ban Apple
devices at his companies if the iPhone maker integrates ChatGPT
at the operating system level.
Yet analysts say Monday's event was about more than just folding
AI into its devices for Apple - it's also about reversing a
decline in sales of its flagship iPhone.
As far as the market is concerned, for once, there are bigger
fish to fry than AI mania today. Political turbulence in Europe
after right-wing gains in elections and a snap poll in France
have injected a degree of uncertainty into stocks, bonds and
currencies.
The Federal Reserve releases its decision on interest rates
tomorrow, along with updated projections for inflation, monetary
policy and growth - the so-called "dot plot".
After Friday's blockbuster jobs report, the focus is squarely on
how many rate cuts Fed policymakers believe will be forthcoming
this year. Even Siri can't answer that question right now.
Key developments that should provide more direction to U.S.
markets later on Tuesday:
* U.S. NFIB Small Business Optimism Survey
* U.S. Treasury 10-year auction
(Reporting by Amanda Cooper; Editing by Christina Fincher)
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