Apple (NASDAQ:AAPL) acquired Canadian Artificial Intelligence (AI) startup DarwinAI earlier this year, Bloomberg reported. This move will likely enhance Apple’s AI capabilities as it continues to make strides in the AI domain.
DarwinAI specializes in developing AI solutions tailored for visual inspection in manufacturing across various industries. Notably, one of its flagship technologies focuses on optimizing AI systems, making them more compact and efficient. This technology aligns well with Apple’s strategy of implementing AI directly on devices, as the report highlighted.
Apple, which already uses AI and machine learning in its products, has been criticized for falling behind its competitors in the AI domain. Nevertheless, the company intends to provide comprehensive details about its AI initiatives later this year. Apple’s CEO, Tim Cook, said during the Q1 2024 conference call that the company is dedicating considerable time and resources towards AI. Additionally, he foresees significant growth potential related to Gen AI and AI technologies for Apple.
Is Apple a Buy, Hold, or Sell?
Apple stock has declined by 10% year-to-date. Softness in iPhone sales and competitive headwinds have pressured its shares. It has 16 Buy, nine Hold, and one Sell recommendations for a Moderate Buy consensus rating.
Analysts’ average price target on AAPL stock is $204.86, implying 18.42% upside potential from current levels.
