A significant strategic shift within Apple’s artificial intelligence division has ignited a powerful rally in the company’s shares, signaling the tech behemoth’s aggressive intent to compete in the generative AI arena. Long perceived as lagging behind rivals, this move has analysts and investors betting on a new growth phase.
Record Highs and Bullish Forecasts
The market’s immediate reaction was emphatic. Apple’s stock price soared to a new 52-week peak of 246.20 euros, decisively breaking into record territory. This surge is underpinned by bullish analyst sentiment and robust hardware forecasts. Research firm IDC projects record shipment volumes for Apple in 2025, fueling talk of a potential new “super-cycle” for the company’s devices.
Financial institutions are reinforcing this positive outlook. Analysts at Loop Capital have raised their price target, citing a favorable model mix for the upcoming iPhone 17 as a key revenue driver. JPMorgan has reaffirmed its bullish stance, maintaining confidence in the equity.
A Strategic Management Overhaul
At the core of this optimism is a radical restructuring of Apple’s AI leadership. In a decisive reset, the company has appointed Amar Subramanya, a veteran of both Google and Microsoft, to lead its AI efforts. He replaces John Giannandrea. Notably, the AI team will now report directly to software chief Craig Federighi, a structural change viewed by market observers as a move to accelerate development and execution.
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Subramanya’s background, including work on projects like Google Gemini and Microsoft Copilot, has raised expectations on Wall Street that Apple will soon roll out competitive, large-scale AI features. The management realignment is seen as a clear statement of intent to close the gap with leading competitors.
Potential Partnership with Intel Adds Speculative Appeal
Adding a layer of long-term strategic intrigue, noted analyst Ming-Chi Kuo reports that Apple is evaluating Intel’s 18A fabrication process for chips slated for production in 2027. Such a move would diversify Apple’s supply chain away from exclusive reliance on TSMC. Investors are interpreting this potential shift as a forward-looking maneuver to mitigate supply risk and secure advanced manufacturing capacity for future growth.
The Road Ahead
With its shares at unprecedented levels, the pressure is now on Apple’s newly configured team to deliver tangible results. All eyes are on the development timeline for upcoming software, particularly iOS 19, expected to be a vessel for new AI capabilities. While the groundwork for a competitive catch-up has been laid, investor expectations for a successful AI offensive have now been set extraordinarily high.
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