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CUPERTINO - Apple (AAPL), the $3.68 trillion technology giant and prominent player in hardware technology, introduced its M5 chip on Tuesday, featuring significant performance improvements for artificial intelligence applications and overall computing capabilities, according to a company press release. According to InvestingPro analysis, Apple’s strong financial health and consistent profitability make it well-positioned to maintain its leadership in chip innovation.
The new chip, built using third-generation 3-nanometer technology, incorporates a redesigned 10-core GPU with Neural Accelerators in each core, delivering over four times the peak GPU compute performance compared to the M4 chip. This innovation comes as Apple maintains strong revenue growth, with the company generating over $408 billion in the last twelve months.
The M5 includes up to a 10-core CPU with six efficiency cores and four performance cores, providing 15 percent faster multithreaded performance than its predecessor. Graphics performance has increased by up to 45 percent with third-generation ray tracing technology.
Memory bandwidth has been enhanced by nearly 30 percent to 153GB/s, allowing the chip to handle larger AI models directly on devices. The M5 also features an improved 16-core Neural Engine for AI processing.
"With the introduction of Neural Accelerators in the GPU, M5 delivers a huge boost to AI workloads," said Johny Srouji, Apple’s senior vice president of Hardware Technologies, in the statement.
The new chip will power the 14-inch MacBook Pro, iPad Pro, and Apple Vision Pro, all available for pre-order starting Tuesday. For Vision Pro specifically, the M5 enables 10 percent more pixel rendering and refresh rates up to 120Hz.
The M5 is designed to enhance performance for Apple Intelligence features and support developers using Apple’s Foundation Models framework. With 32GB memory capacity, the chip allows simultaneous operation of demanding applications.
Apple noted that the power-efficient design of the M5 aligns with the company’s environmental goals to be carbon neutral across its entire footprint by 2030. Trading near its 52-week high, Apple continues to demonstrate its commitment to both environmental and financial sustainability. For deeper insights into Apple’s valuation and growth prospects, including 15+ exclusive ProTips, visit InvestingPro.
In other recent news, Apple has announced the launch of its upgraded Vision Pro headset, featuring the new M5 chip, set to hit stores on October 22. This device promises improved performance and battery life, with pre-orders now open in several countries, including the U.S. and Canada. Meanwhile, BofA Securities has reiterated its Buy rating on Apple, maintaining a price target of $270.00, citing stable shipping times for the iPhone 17 Pro and Pro Max models. Additionally, Apple is set to make its iPhone Air available for pre-order in China starting October 17, with the model supporting the country’s eSIM services. In India, Apple is actively engaging with the government to discuss potential changes to the income tax law, which may impact its manufacturing growth in the region. These developments highlight Apple’s continued efforts to expand its product offerings and market presence.
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