Apple (AAPL) is stepping into the wearable tech market with plans to introduce its first pair of smart glasses. The tech giant is gearing up to challenge Meta’s (META) smart Ray-Bans by developing its own smart glasses powered by custom microchips.
Apple’s Smart Glasses Could Disrupt the Market
According to a Bloomberg report from May 8, Apple is building a specialized processor, codenamed N401, to power its smart glasses. The chip is designed for energy efficiency. It will also manage multiple cameras integrated into the glasses. Initially, the glasses will be non-augmented reality versions. These glasses will focus on basic functions like taking photos, recording videos, and using AI for translation and object recognition.
Apple’s plans for these glasses include some exciting features. They could provide visual intelligence for users. The glasses may allow users to scan their surroundings, gather information, and even get directions. While it’s still early, the development of Apple’s smart glasses could redefine the wearable tech market and offer an entirely new experience for users.
Apple Advances with New Chips for AI and Macs
But Apple’s plans don’t stop there. The company is also working on next-generation chips for other products. These include the M6 and M7 chips for Macs. They’re also developing AI server chips for its “Apple Intelligence” platform. Bloomberg sources revealed that these chips will be key to enhancing Apple’s AI capabilities. As a result, Apple could challenge high-end chipmakers like Nvidia.
For investors, Apple’s push into AI chips and powerful semiconductors adds a whole new dimension to its growth prospects. The company’s expansion into AI shows it’s not just a hardware leader but also setting up to dominate software and service-based markets.
Apple’s Stock Price Could Surge with These Innovations
What does all this mean for Apple’s stock and future growth? As Apple diversifies into AI and smart wearables, the tech giant continues to solidify its leadership position. If Apple’s smart glasses become a hit, it would open up an entirely new market for the company. This move would allow Apple to tap into the growing demand for wearable devices and AI-powered tech.
The chip developments could also push Apple’s stock price higher. Analysts are already optimistic about the company’s future. The M6 and M7 chips for Macs, along with the AI chips for its “Apple Intelligence” platform, should lead to more advanced and efficient products. In the long run, these innovations could deliver massive returns for investors.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, eight Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $228.65 per share implies 16% upside potential.
