UPDATE—June 8, 2024: This article has been updated to reflect more recent share price values.

Apple (AAPL) is set to hold its annual Worldwide Developers Conference (WWDC) keynote on Monday, kicking off the five-day event, with investors likely to be watching for any updates on the company's 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) game plan.

New AI Features and iOS 18 Expected

The iPhone maker 澳洲幸运5官方开奖结果体彩网:is expected to unveil its latest operating system, iOS 18, as well as 澳洲幸运5官方开奖结果体彩网:generative AI features built into Apple apps like iMessage, Photos, and Safa🌼ri.

Apple 澳洲幸运5官方开奖结果体彩网:recently announced a new iPad Pro powered by its latest chip, the M4, which can support running AI applications locally, marking a key milestone in Apple's push into AI. Previously, the company had been relatively 澳洲幸运5官方开奖结果体彩网:quiet about its AI initiatives compared to many of 澳洲幸运5官方开奖结果体彩网:its big tech peers.

Analysts indicated that while they don't expect Apple to unveil the new iPhone 16 until the fall, the company could still reveal some AI-related updates.

"We see more of Apple’s AI announcements occurring in September at the iPhone 16 launch than at WWDC, but see WWDC as directionally positive as well," Bernstein analysts said.

AI-Fueled iPhone Upgrade Cycle

Bank of America analysts 澳洲幸运5官方开奖结果体彩网:indicated they anticipate "upcoming AI enabled phones (IntelliPhones) to drive a multi-year upgrade cycle similar to the step function improvement driven by the introduction of smartphones."

The analysts said they "expect the adoption curve of AI phones to be faster than the adoption of smartphones, 5G," and that "with an installed base of over 4bn smartphones," Apple could have an opportunity for the next upgrade cycle to be a "once in a decade type of event."

Potential AI Partnership

The company could also comment on recent reports of a potential partnership with Microsoft-backed (MSFT) OpenAI and Alphabet's (GOOGL) Google.

An agreement could license the companies' respective AI models, GPT-4o and Gemini, to integrate the AI tech into Apple software and devices. An AI partnership with OpenAI or Google may also catalyze a major upgrade to Apple's voice assistant Siri.

How AI Announcements Could Affect Apple Stock

Melius Research analysts said that "Apple's stock is gearing up for a run" as the upcoming WWDC could be the most important annual conference "since the launch of the iPhone in 2007."

The analysts said the stock "typically trades up into the event and then sells off," though they noted that "these AI announcements have broken some well-known patterns for other stocks" and could do so for Apple as well.

Melius said "WWDC announcements are likely to drive iPhone units with a higher ASP at some point soon" and could help "secure Apple's high-margin services revenue growth for a long time," adding that is "all that matters for the long-term investor."

Apple shares have gained about 8.8% over the past 12 months and 2.3% since the start of the year, at $196.89 per share as of Friday's close.