Josh Brown: Apple’s AI Push Changes Everything for the Stock
▼ Summary
– Apple is testing an internal AI chatbot called Veritas that provides contextual answers based on users’ lives, according to CEO Josh Brown.
– Brown believes Veritas represents Apple’s true AI innovation rather than Apple Intelligence, which didn’t drive consumer product upgrades.
– The potential public release of Veritas could significantly boost Apple’s stock price and justify its high forward P/E ratio of 35.
– Apple shares surged over 4% to record highs on Monday and have gained more than 33% over the past six months.
– Despite current optimism, Wall Street analysts expect a potential pullback with price targets suggesting shares could decline over 4%.
Investors in Apple may be overlooking the substantial potential embedded within the company’s artificial intelligence initiatives, according to Josh Brown, CEO of Ritholtz Wealth Management. Brown recently discussed on CNBC’s “Halftime Report” that Apple has been internally testing an AI chatbot named Veritas, which reportedly provides personalized, context-aware responses based on user data. This development could further propel Apple’s stock, which already reached record levels following strong early sales reports for the iPhone 17.
Brown emphasized that Veritas represents the real outcome of Apple’s AI research, contrasting it with the previously announced Apple Intelligence, which he suggested failed to drive significant consumer upgrades. He described the buzz around Veritas as a “secret project” circulating among Silicon Valley insiders, reserved for employee use only. Should Apple decide to launch Veritas to the public, Brown believes it would rank as the most significant strategic move the company could make, potentially justifying the stock’s elevated forward price-to-earnings ratio of 35.
Apple shares surged more than 4% on Monday, setting new all-time highs and bringing the six-month gain to over 33%. Brown remarked that the market has yet to factor in the possible impact of a Veritas rollout, stating, “If and when Apple decides they want to roll this thing out, that’s a whole different story for the stock.” He added that current analyst expectations and financial models do not account for this potential catalyst.
Despite the optimistic outlook, some Wall Street analysts anticipate a near-term pullback. While the consensus among LSEG-surveyed analysts remains a “buy” rating, the average price target suggests shares could decline by more than 4%. This divergence highlights the uncertainty surrounding Apple’s ability to convert its AI advancements into sustained market performance.
(Source: NewsAPI Tech Headlines)
