Apple's AI Innovation Drives Asian Supplier Stock Prices Up

Apple's recently announced AI technology integration plans at its developer conference are driving up stock prices of Asian suppliers. Apple presented a vision of delivering innovative user experiences by incorporating AI features into its products, leading to a significant surge in the share prices of Asian companies supplying related components and materials.

Apple's AI Technology 'Apple Intelligence'

Apple unveiled its AI technology, '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 streamline and accelerate daily tasks.

Specifically, Apple has set a new privacy standard in the AI field through its 'Private Cloud Compute' technology. This technology allows for flexible scaling of computing power between on-device processing and larger server-based models, ensuring that data is never stored or exposed.

Surge in Asian Supplier Stock Prices

Following Apple's announcement of its AI technology integration plans, major suppliers in the Asian region have seen their stock prices rise.

Samsung Electronics and SK Hynix in South Korea saw their share prices increase by 2.4% and 3.7%, respectively. Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn also showed strong performance, rising by 2% and 0.4%, respectively.

AAC Technologies and BYD in China also experienced significant jumps in their stock prices, rising by nearly 2% and 8%, respectively.

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

Expectations for Apple's AI Strategy

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

Analysts from Morgan Stanley, Evercore, and Bank of America predict that Apple Intelligence will stimulate purchases of the latest iPhones, leading to a 'supercycle.'

Bloomberg analyst Mark Gurman expressed an optimistic outlook, stating that "while Apple's AI products have lagged behind competitors, Apple has historically captured the market despite delayed product launches."

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

In conclusion, Apple's AI technology integration plan appears poised to deliver innovative user experiences while simultaneously addressing privacy concerns. As a result, improved performance is expected from related Asian suppliers.