Apple’s stock is up 4% for the year, trailing the overall S&P 500’s YTD gain of 13%. But investors are hoping the iPhone maker’s plans to bolster its artificial intelligence (AI) capabilities will give the stock a much-needed boost to continue staying in the green.
If the company’s stock pushes to the upside, traders can get added leverage using the Direxion Daily AAPL Bull 1.5X (AAPU ). The fund adds another 50% exposure to Apple’s stock, increasing the potential for gains. That’s especially the case if its AI plans turn out better than expected as the company revealed its generative AI initiative called Apple Intelligence at the Worldwide Developers Conference.
'Optimism Has Been Steadily Growing'
“AI is expected to be a central focus of the company’s annual Worldwide Developers Conference,” a Bloomberg report said. The report noted that “optimism has been steadily growing. Investors are hoping new AI features will be enticing enough for consumers to pay up for the next generation of iPhones, countering the perception Apple has few catalysts for growth.”
With Apple Intelligence’s debut, the iPhone maker aims to distinguish itself from its competitors and thus, offer shareholder value. The biggest AI makeover will involve its voice-activated Siri application built into its iPhones. That should generate some excitement for consumers.
“Like other generative AI-powered assistants, you’ll be able to ask follow-up questions and interrupt yourself while making requests,” Yahoo Finance reported. “Siri can now respond to requests via typed text if you don’t feel like making them out loud. You’ll also be able to ask Siri to use ChatGPT, rather than Apple’s own models to make requests.”
Siri’s AI makeover may or may not create enough buzz for consumers to purchase the latest iPhones. Meantime, traders can use AAPU to capitalize on short-term upticks in the company’s stock if the AI theme continues gaining traction.
Trading the AI Theme
Traders who don’t want single-stock exposure can always to opt for trading the broader AI theme. That move is inherent in the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT ).
The fund seeks daily investment results equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. The index aims to provide exposure to exchange-listed companies in developed markets it expects will benefit from the adoption and utilization of robotics and/or AI.
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
