There’s mounting evidence of how serious Apple is about artificial intelligence, Jim Cramer said Tuesday, pointing to a Wall Street Journal report about the tech giant developing AI data center chips. “This is a very good sign,” Jim said. “This is the beginning of what I regard as the Apple offense on AI.” He also reiterated his Apple stock mantra: “Own it, don’t trade it.” According to the Journal , the project known as Apple Chips in Data Centers, or ACDC internally, has been in the works for years but does not have a definitive timeline. The report also said Apple has been working with Taiwan Semiconductor Manufacturing to design and produce these chips. Apple was not available to respond to CNBC’s request for comment on the Journal article. Hours later, however, Apple announced at a planned product event Tuesday new iPads and an updated M4 chip, which the company described as “outrageously powerful” for AI. The headlines indicate that Apple is taking AI more seriously, which in turn should advance the company’s position in the heated arms race among its Big Tech peers and improve its financial performance. Apple CEO Tim Cook also teased upcoming AI updates during last week’s post-earnings conference call. “We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era, including Apple’s unique combination of seamless hardware, software and services integration.” AAPL YTD mountain Apple (AAPL) year-to-date performance While experiencing a bounce last week after concerns about quarterly iPhone sales and China’s weakness proved to be overblown, Apple shares were still down 5.5% year to date compared to the S & P 500 ‘s nearly 9% over the same stretch. Following a 48% gain last year and an all-time just under $200 per share back in December, Apple shares fell on hard times. The stock dropped to the mid-$160s last month. Jim suggested Tuesday that Apple investors will be rewarded for their patience once management fully unveils their forthcoming AI strategy. That’s expected at the company’s annual Worldwide Developers Conference in June. Jim added, however, that investors who wait for Apple’s announcement to buy shares could miss the expected upside from an AI-driven iPhone refresh cycle. “Nobody cares until they see it,” Jim said, one day after he expressed excitement about what’s to come. “I mean, I can’t imagine not wanting to get that phone if AI is in it.”
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