Apple (NASDAQ: AAPL) may be set to erase much of its stock market gains accrued since its May earnings report and July 10 partnership with OpenAI, as the company is reportedly postponing the release of ‘Apple Intelligence’ from September to October, according to reports from July 28.
Additionally, though the delay is justified by the need to refine further and improve the artificial intelligence (AI) features, users may find themselves somewhat underwhelmed even when the integration is finally complete, as they will allegedly initially miss some features.
Why Apple Intelligence may force AAPL shares down
Though delays stemming from the need to finish work on software and iron out any remaining issues are frequently welcomed by users, investors may prove unkind to Apple as the big tech firm has already been tardy with AI adoption and already offered a major cancellation of a long-standing project in 2024 – its electric vehicle (EV).
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Tesla Motors (NASDAQ: TSLA), another company that has recently stepped up its AI-related signaling through self-driving tests and the promise of an autonomous taxi has itself seen a sharp stock market decline once it delayed its ‘Robotaxi’ event from August to October.
Indeed, the EV maker has, due to the postponement and the weaker-than-expected delivery report, fallen significantly from its July highs above $263 to its press time price of $219.80.
Still, as TSLA stock’s decline came from a confluence of events surrounding the autonomous taxi and the number of shipped vehicles, Apple’s make-or-break moment may come only on August 1 with the publishing of the upcoming earnings report, which could either cushion or amplify the AI-related disappointment.
The impact of Apple Intelligence on AAPL stock
The announcement that Apple is partnering up with OpenAI – the makers of ChatGPT – to bring AI to its upcoming operating systems helped the big tech firm’s stock enter a major rally after multiple months of lackluster performance.
After trading mostly sideways through the first quarter of the year, AAPL shares rose $169.30 on May 1 – the day of the latest earnings report – to $193.12 – the day of the AI partnership – but then rocketed above $216 within just one week due to the news.
Indeed, the combination of a strong earnings report and of Apple Intelligence helped the technology stock again perform significantly more in line with what has been expected of it for years, and has, despite some slight corrections, managed to climb even higher in the subsequent weeks to reach its press-time price of $218.24.
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