Apple analyst says rumors of in-house AI chip are ‘another breadcrumbs’ ahead of WWDC: ‘Cupertino is ready to play chess… while others play checkers’ – Apple (NASDAQ:AAPL)

Apple Inc. (NASDAQ: AAPL) is developing artificial intelligence chips in-house even as it plans to make a splash in the AI ​​space, several media outlets recently suggested. Against this backdrop, one optimistic analyst reflected on what this could mean for the tech giant.

Another breadcrumb: “Cupertino (is) ready to play chess with AI… while others (are) playing checkers,” the Wedbush analyst said. Daniel Ives in a note. Apple’s plan to put some of its most advanced high-end chips in data centers and use them to process its most advanced AI-based services was another breadcrumb, as it approaches of the company’s annual report. Worldwide Developers Conference, said the analyst.

“Apple will not drive 45 mph in the right lane when it comes to its AI strategy that will be revealed at WWDC in June and will drive in the left lane at 80 mph,” Ives said. The company would look to monetize AI on the services front, with developers being the linchpin of that strategy, he said.

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Why it’s important: Apple’s intention to use its advanced, internally developed chips around AI gives the company more control over its AI plan, the Wedbush analyst said. He expects the company to build a broader chip ecosystem for its AI strategy.

“In this AI revolution (Tim) Cook and Apple are much further along the path to their own LLMs and proprietary AI technologies than the Street expects in our opinion and this move is another hand signal as we approach what could be the biggest event “unveiling for Cook and Cupertino for about a decade,” Ives said.

What to expect at WWDC: At the developer conclave starting June 10, Apple will likely unveil its “long-awaited” AI strategy to its “golden installed base” and developer community, Ives said. The analyst expects an AI-driven super-cycle, starting with the iPad line, launching this week, and continuing with the AI-powered iPhone 16 this fall.

Ives also plans the launch of an AI App Store, which would be the fundamental starting point for developers.
and AI applications in the years to come. Leveraging the 2.2 billion iOS devices worldwide as well as an iPhone 16 model that will innovate in AI and kick off this next supercycle at Apple, he added.

Ives has an Outperform rating and a $250 price target for Apple.

Apple ended Thursday’s session up 1% at $184.57, according to data from Benzinga Pro.

Read next: Apple will pursue ‘an aggressive, no-holds-barred strategy around AI,’ bullish analyst says: ‘The worst is in the rearview mirror’

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