Apple's recent announcement of its AI technology integration plans at its developer conference is driving up stock prices for suppliers in Asia. Apple has outlined its vision of incorporating AI capabilities into its products to deliver revolutionary user experiences, leading to significant gains in the stock prices of Asian companies supplying related components and materials.

Apple's AI technology 'Apple Intelligence'

Apple unveiled its AI technology called 'Apple Intelligence' at its annual Worldwide Developers Conference (WWDC) held on June 5th. This system combines the power of generative AI models with personal context to provide highly useful and relevant intelligence.

Apple Intelligence is deeply integrated into iOS 18, iPadOS 18, and macOS Sequoia, leveraging the power of Apple Silicon to understand and generate language and images and perform tasks across various apps. It also utilizes personal context to simplify and accelerate daily tasks.

Specifically, Apple has set a new standard for privacy in the AI field through its 'Private Cloud Compute' technology. This technology enables flexible scaling of computing power between device-side processing and larger server-based models, ensuring that data is not stored or exposed.

Rising stock prices of Asian suppliers

Following the announcement of Apple's AI technology integration plans, stock prices of key suppliers in Asia have witnessed an upward trend.

South Korea's Samsung Electronics and SK Hynix saw their share prices rise by 2.4% and 3.7%, respectively. Taiwan's TSMC and Foxconn also performed well, rising by 2% and 0.4%, respectively.

China's AAC Technologies and BYD also experienced a sharp surge in their stock prices, rising nearly 2% and 8%, respectively.

These companies are key suppliers of components and materials to Apple, and the expectation of increased demand driven by Apple's adoption of AI technology has led to the rise in their stock prices.

Expectations for Apple's AI strategy

Market experts predict that Apple's AI strategy announcement will contribute to future revenue growth and user base expansion. [6][16]

Analysts from Morgan Stanley, Evercore, and Bank of America expect Apple Intelligence to drive 'supercycle' in latest iPhone purchases.

Bloomberg analyst Mark Gurman expressed optimistic views, stating that "Apple's AI products lag behind competitors, but even in the past, Apple has captured the market despite late product launches."

Counterpoint Research, meanwhile, analyzed that "Apple will gain user trust by addressing privacy issues through on-device processing."

In conclusion, Apple's AI technology integration plans appear to offer innovative user experiences while simultaneously addressing privacy concerns. As a result, improvements in the performance of related Asian suppliers are anticipated.