Apple stock price looks for new catalyst after recent rebound
While Apple’s stock has rallied 15% from its April low, Apple now needs a new story to drive further gains.
Apple lags behind its peers
Apple's stock has lagged far behind major technology peers like Nvidia, Meta, Alphabet, Amazon, and Microsoft this year, which have seen their shares soar on the back of optimism surrounding artificial intelligence (AI). While the S&P 500 and Nasdaq are up double digits year-to-date, Apple's stock has eked out just a 2% gain, weighed down by declining sales and a tepid reception to its Vision Pro headset.
Upcoming conference could be a game changer
However, the situation may be poised to change starting on 10 June when Apple hosts its annual Worldwide Developers Conference (WWDC). Expectations are high that Apple will unveil a host of new AI capabilities integrated across its products and services, including Project Graymatter for AI-powered photo editing, improvements to Siri, generative AI for custom emojis, and smart notification recaps using AI.
Hidden advantages coming into play
While Apple is widely viewed as behind companies like Google and Meta in AI development, it has some underappreciated advantages. These include dedicated neural engine chips in its A-series processors that allow many AI tasks to run locally on-device, bypassing the need for expensive cloud infrastructure that competitors must invest in.
If Apple can showcase compelling AI capabilities at WWDC and integrate them successfully into the next iPhone model launching in September, analysts believe it could drive a new "supercycle" of demand. This AI-driven optimism around future iPhone sales could propel Apple's stock higher through the summer and into the autumn.
LSEG Data & Analytics analyst Apple recommendations
LSEG Data & Analytics data shows a consensus analyst rating of ‘buy’ for Apple – 11 strong buy, 19 buy, 14 hold and 1 sell (as of 29 May 2024).
Apple technical view
The Apple share price is seen heading back up towards the upper boundary of its wide July 2023 to May 2024 sideways trading range which can be seen at the July and December 2023 highs at $198.23 to $199.62. This resistance area and the psychological $200.00 mark would need to be overcome for the Apple share price to surge higher on a sustainable basis.
Apple Weekly Chart
On the daily chart Tuesday’s high at $193.00 would need to be exceeded on a daily chart closing basis for the January peak at $196.38 to be back in play.
Apple Daily Chart
Immediate upside pressure should be maintained while last week’s low at $186.63 underpins on a daily chart closing basis. Were this level to give way, the 200-day simple moving average (SMA) at $181.04 may come back into play.
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