Following Wednesday's report from Bloomberg that Apple (NASDAQ:AAPL) is working on its own framework to create large language models (LLM) called "Ajax" that could challenge OpenAI, Citi analysts said the iPhone maker is aiming to catch up with the AI trends across infrastructure and applications.
Analysts, who have a Buy rating and $240 price target on Apple shares, said they foresee the tech giant's "upcoming devices to further build on their predecessors' AI computing processing capabilities with advanced Siri and Gen AI-based app tools to follow in first half of 2024."
"Moreover, Apple's Vision Pro blends digital content with the physical world using spacial AI computing (see A Hardware Company That Thinks like a Software Company)," they added.
Apple shares gained 0.7% following the report. It is currently up 0.5% on Thursday, trading above $196 per share.