Apple(US:AAPL) fool.comยท2024-05-27 09:50Core Viewpoint - Apple is expected to make significant announcements regarding its AI strategy at the upcoming Worldwide Developers Conference (WWDC) on June 10, 2024, which could impact its stock performance positively or negatively [2][3][4]. Group 1: Anticipated AI Developments - CEO Tim Cook indicated that Apple is making "significant investments" in generative AI and hinted at exciting news to be shared soon [2]. - Speculation suggests that Apple may announce a three-pronged AI strategy, including an on-device large-language model (LLM), a cloud-based LLM, and potentially new chatbots [4]. - Major improvements to Siri, incorporating generative AI technology, are also expected to be unveiled at WWDC [4][5]. Group 2: Market Context and Stock Performance - Apple's stock has underperformed in 2024 compared to other major tech stocks, which have seen double-digit or even triple-digit percentage increases [3]. - The company is trading at a forward earnings multiple of 29, with a year-over-year revenue decline of 4% in its latest quarter, indicating that investors are anticipating a catalyst for growth [7]. Group 3: Risks and Considerations - There is a possibility that Apple may not deliver the expected AI announcements at WWDC, which could lead to disappointment among investors [6]. - Even if Apple announces new AI functionalities, the stock may not react significantly due to pre-existing market expectations [7]. - If the new AI offerings are perceived as underwhelming, it could negatively impact Apple's stock price [7][8].