Apple stock surges despite analysts’ concerns over AI strategy shift

Published 01/07/2025, 15:24
© Reuters

Investing.com -- Apple (NASDAQ:AAPL) stock rose 2% Tuesday, extending Monday’s gains, following reports that the tech giant is considering using external AI technology to power its Siri voice assistant.

According to Bloomberg, Apple has held discussions with both Anthropic and OpenAI about potentially leveraging their large language models for a new version of Siri. The company has reportedly asked these AI firms to train versions of their models that could run on Apple’s cloud infrastructure for testing purposes.

This marks a significant shift in Apple’s AI strategy, as the iPhone maker currently relies on its in-house technology, called Apple Foundation Models, for most of its AI features. The company had been planning to develop a new version of Siri using this proprietary technology for 2026.

Despite the stock’s positive movement, some analysts view this potential strategy shift negatively. Lynx Equity Strategies analyst Kc Rajkumar suggested the news indicates Apple’s AI team may be struggling with internal development.

"AAPL stock’s knee jerk reaction yesterday to the UPSIDE may have been premature. We think the implications of the media report are to the DOWNSIDE," Rajkumar noted.

The analyst further explained that if Apple adopts OpenAI’s technology, it might need to abandon plans to run its AI data centers on Apple silicon, potentially becoming a customer of NVIDIA (NASDAQ:NVDA) instead. This could significantly increase Apple’s capital expenditures and impact its free cash flow, possibly affecting its stock buyback and dividend programs.

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