By Angela Palumbo
Apple's artificial intelligence updates have yet to wow Wall Street, and while that's likely going to be a problem for the stock in the near-term, there's room for upside ahead.
Apple hosted its Worldwide Developers Conference keynote on Monday, where it shared highly anticipated AI updates. Investors were mostly looking for detailed information about the launch of Siri AI, the company's long awaited update to its Siri chatbot that runs on Apple Intelligence.
Siri AI functions similarly to other AI chatbots by providing in-depth answers to user questions. It can do things for the user following prompts, like sett reminders or look through messages and pull specific information.
Apple also showed off other AI updates, including changes to its Safari web browser and other apps, like Shortcuts and Passwords.
Apple introduced its AI software at WWDC in 2024, but the most anticipated launches have been delayed several times now. Wall Street was growing impatient and needed to see what Apple has been working on behind the scenes, especially as fellow tech giants push out their own AI capabilities. Monday was a chance for the company to assuage concerns that it's behind on AI development. While what was announced was a step in right direction, it still left some investors wanting more.
Shares fell about 5% from their peak after the AI demonstration on Monday. The stock was dropping 2.6% to $293.63 on Tuesday and was on pace for its percentage decrease since Feb. 12, according to Dow Jones Market Data.
"Given the level of optimism into this event, we think the announcement came in a bit shy of expectations," TD Cowen analyst Krish Sankar wrote on Monday. Sankar added that he was hoping to see more full integration between Apple's AI and third party apps. Instead, the AI acts similarly to other chatbots and only interacts with Apple's own products.
Needham analyst Laura Martin wrote in a note on Tuesday that the keynote did not address how AI could help drive Apple's revenue, cost savings, or earnings growth.
"AAPL did nothing to suggest that it can up-charge for its AI tools and capabilities, or save money from using AI," she wrote.
AI monetization is crucial for companies as they spend big on developing the tech. Even though Apple is spending less than other AI behemoths, it is still investing heavily in an AI future. Fiscal second-quarter research and development operating expenses were $11.4 billion, a 34% increase from the prior year.
The bar was also set very high for the iPhone maker, with the stock up more than 50% over the last 12 months headed into the event. This left little room for any disappointment. However, it isn't unusual for Apple stock to drop right after WWDC. Over the past decade, shares have declined slightly on the day of the WWDC keynote, according to Dow Jones Market Data. Three months later, they're up an average of about 14%.
While still early days, Melius Research analyst Ben Reitzes looks at Apple's AI updates as long-term drivers of device upgrades and services growth.
"We see Siri AI being a foundation worth building upon that will help power years of upgrades into new products like a foldable iPhone (fall), 20-year anniversary iPhones (next year) and new product categories," he wrote.
Apple stock also was also up ahead of WWDC for more reasons than just AI excitement. Financial results have been strong, iPhone demand remains high, and the company is able to manage memory shortages well. Expected launches of new devices, like the high priced foldable iPhone, are likely to keep boosting product demand.
Apple continues to play the AI long game. Any near-term selloff of the stock will likely reverse as more updates and other positive data reinvigorate sentiment.
Write to Angela Palumbo at angela.palumbo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 09, 2026 15:20 ET (19:20 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments