Shares of technology companies rose as traders continued to pile into the leading sector.
Shares of Apple fell as its new product launches failed to impress investors. "The focus for Apple today is going to be on ... what else is there these days -- but AI!" said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
The question is "to what degree will Apple start adopting more AI which we as consumers can use on our Apple products." At what's considered its most significant software-developer conference in a decade, Apple unveiled "Apple Intelligence," a systemwide update to software on its devices that the company said could offer a personalized version of generative AI to users.
Apple's shares have lagged those of Microsoft, Alphabet and Nvidia this year, due to a perception it has fallen behind in the AI arms race.
Nvidia shares rose after the maker of artificial-intelligence empowering computer chips executed a stock split, exchanging 1 share for 10 new ones, and bringing down the price of the shares to a level less intimidating to retail investors. One strategist said the AI craze is unlikely to die down any time soon.
"AI continues to be so exciting for so many," said Joyce. AI is likely to increase efficiency and productivity for corporations across the spectrum, one reason that the consensus Wall Street expectation for earnings growth for the next two years is so strong, said Joyce.
Tesla Chief Executive Elon Musk tweeted on Saturday that 90% of retail shareholders voted in favor of his compensation package.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-10-24 1729ET
