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Apple’s AAPL The stock rose +7% to a new 52-week high today after the renowned iPhone maker announced a partnership with OpenAI to integrate ChatGPT into its legendary product line and services.

With this in mind, investors are surely wondering if it’s time to buy Apple stock given the company’s innovative overhaul of its operating system.

Apple Intelligence Overview

Apple joins Alphabet in joining the ranks of major technology companies accelerating and leveraging the capabilities of artificial intelligence through generative AI chatbots. GOOGLEMeta-platforms METAand Microsoft MSFT In this regard.

Siri, Apple’s iconic voice-based virtual assistant, will be equipped with AI chatbot capabilities as part of Apple Intelligence, the company’s AI platform that will be integrated into iOS 18, the next-generation operating system that will be used on iconic devices such as the iPhone, iPad, MacBook, and smartwatches.

Current performance and valuation

With a price increase of over $200 per share on Tuesday, Apple stock is now up for the year, posting a gain of +7%. Although this slightly outperformed the S&P 500 benchmark, Apple fell short of expectations. Alphabet, Shares of Meta Platforms and Microsoft rose 15% year-on-year on the technology-focused Nasdaq.

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At current levels, Apple’s forward earnings multiple of 29.3x represents a slight premium to Meta Platforms’ and Alphabet’s P/E ratios and 21.7x the benchmark, but is below Microsoft’s 36.3x.

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Growth curve

According to Zacks Estimates, Apple’s total revenue is expected to remain nearly flat in fiscal 2024, but is expected to grow 5% to $405.81 billion in fiscal 2025. Notably, Apple’s revenue is more robust than all of the major tech rivals mentioned above. The closest is Alphabet, whose total revenue is expected to surpass the $300 billion mark next year.

The bottom line is that Apple’s annual earnings are expected to rise 7% this year and another 9% increase to $7.21 per share in fiscal 2025.

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Bring away

While it’s too early to say that Apple could be at another inflection point due to its artificial intelligence offerings, AAPL is coming off a Zacks Rank of #3 (Hold). However, there could be better buying opportunities after the smoke clears from the recent rally that came on the back of the Apple Intelligence announcement and collaboration with OpenAI.

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Apple Inc. (AAPL): Free Stock Analysis Report

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