Apple's AI Strategy Fuels Stock Surge Amid iPhone Rebound Hopes

Apple shares gained over 3% premarket after forecasting strong sales growth and recovering from a dip in iPhone sales. The release of artificial intelligence features has reassured investors about AI spending's revenue potential. Analysts see potential growth, especially in China, as Apple rolls out new AI features.

Apple's stocks soared by over 3% in premarket trading on Friday following the company's optimistic sales growth forecast, signaling a rebound from previously declining iPhone sales. The tech giant is ramping up its artificial intelligence features, adding to investor confidence in the revenue prospects of AI technology.

Industry experts have noted Apple's cautious approach to AI, distinct from the sizable investments of its peers like Microsoft. This strategic choice seems to be paying off, particularly after China's DeepSeek introduced free AI technology that drove down competitor stocks and bumped up Apple's market value.

Analysts have mixed views on Apple's growth, especially in the Chinese market where a local partner is yet to be secured for AI feature rollout. Nevertheless, the increasing interest from analysts in Apple's stock, underscored by raised price targets, reflects growing confidence in the company's future performance bolstered by AI.

(With inputs from agencies.)