Here's what to expect from Apple's AI event and how to trade it

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The pressure is heating up on Apple to flaunt its AI potential at its annual Worldwide Developers Conference Monday.

"While investor expectations are high, we think Apple could positively surprise, helping to unlock pent-up demand, accelerate iPhone replacement cycles, and sustain recent stock outperformance," wrote Morgan Stanley's Erik Woodring in a recent note to clients. Shares of Apple have lagged major technology peers since the start of the year, rising just 1.5%.

mountain Shares this year "The more than 2 billion installed base means the company has a large user base with massive amount of data to optimize user experience," he wrote. Still, not everyone on Wall Street is convinced any Apple announcement will be a game changer.

 

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