Apple Inc. (AAPL) shares surged nearly 4% following reports about its plans to launch an AI-powered web search tool, named World Knowledge Answers, expected next year. This initiative aims to enhance Siri’s capabilities and later extend to Safari and Spotlight, positioning Apple to compete directly with major players like OpenAI. The upgrade to Siri, which struggles with complex queries, will leverage large language models (LLMs) for improved responses. Apple is also collaborating with Alphabet to integrate the Google Gemini model into Siri, while exploring alternatives like Anthropic’s Claude.
This positive momentum lifted AAPL to $238.47, reflecting investor optimism about expanding beyond iPhone revenues, especially after a U.S. judge allowed Apple to maintain its lucrative partnership with Google, generating approximately $20 billion annually. Despite AI competition, Apple’s revamped Siri may help it gain traction in the generative AI market. Currently, AAPL holds a Moderate Buy consensus on TipRanks, with an average price target of $239.36.
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