Shares in Apple Inc (AAPL) stock are beginning to rebound slightly on Wednesday, a day after the company revealed its new Mac Mini and Mac Studio models. The newest models feature updated chips and other upgrades for AI applications. AAPL stock remains down 6% in the last month, but has rebounded nearly 2% today.
The announcement, a few weeks before Apple is expected to release new iPhone models, shows how desktop computers have become strategically important for Apple as a foothold in the AI development world and as a showcase for the capabilities of its processors. Apple is poised to launch its first foldable iPhone, expected to ship over 10 million units in its first year, while also making significant strides in AI with new M6 and M5 Ultra chips. These chips also feature in the Mac Mini and Mac Studio, which go on presale on Tuesday and will ship on Sept. 22.
The Mac Studio is Apple’s most powerful computer that doesn’t have a built-in screen (Apple’s Mac Pro was discontinued earlier this year). Some models will come with the M5 Max chip, which Apple says will allow LLMs to run nearly four times faster than its predecessor. Additionally, the Mac Mini can now be configured with two new chips, the M6 and M5 Pro. It’s the first Apple computer with an M6-generation chip, which is manufactured on a 2-nanometer process by Taiwan Semiconductor Manufacturing (TSM). “With these frameworks and new chips, developers can run and fine-tune large AI models locally on their Mac,” Apple said in the press release.
Also Read: SEC Submits Proposal for New Rules to Modernize Crypto Custody
Wall Street firms are upping their forecasts for Apple stock ahead of the next launch season. However, the company is also entering a new era, with Tim Cook departing from his role on September 1. This fact has led to some caution amongst investment firms. Bank of America kept its Buy rating and its Apple stock price target at $380, and the bank argues that AAPL enters a bolder stretch once Tim Cook hands the CEO job to John Ternus. Fortunately, this forecast points to close to 20% upside from the $309 close on Aug. 25.