Apple’s stock surged over 2% following reports of a collaboration with Chinese tech giant Alibaba to launch AI-powered smartphones in China, where the company has struggled.
On Tuesday, Apple’s shares jumped 2.18% to $232.62 on the New York Stock Exchange, boosting its market capitalization to $3.494 trillion and further cementing its position as the world’s most valuable company.
The Information reported that Apple plans to release an iPhone featuring generative AI technology in partnership with Alibaba.
Apple has faced challenges in China, including regulatory hurdles that prevented the launch of AI-enabled phones, leading to a significant drop in sales.
The stock’s rise of more than 2% appears to have been driven by expectations that this strategic alliance with Alibaba will boost sales.