Apple shareholders continue to anticipate an AI-powered Siri. A recent partnership with Google might enable Apple to make it a reality.

Apple and Google Join Forces to Advance AI-Powered Siri

Tobias Schwartz and Miguel Medina / AFP / Getty Images

Apple is poised to introduce an upgraded, AI-driven Siri later this year, thanks to a new collaboration with Google that could accelerate the rollout after previous setbacks.

Main Highlights

• Apple has announced plans to integrate Google's Gemini technology into its upcoming Apple Intelligence features.
• The partnership will enable the release of a more advanced, AI-enhanced Siri, expected before the end of the year.

This agreement with Google may help Apple strengthen its position in the AI sector and reassure investors about its strategic direction.

On Monday, both companies confirmed that Apple's future AI capabilities—including a smarter Siri—will be powered by Google's Gemini. This announcement ends months of speculation about a potential collaboration between the tech giants.

Following the news, Alphabet's (GOOGL) stock rose by 1%, reaching a record high and pushing its market value past $4 trillion for the first time. Meanwhile, Apple (AAPL) shares saw a modest increase of 0.3%, though they remain about 9% below last month's peak.

Implications for Investors

Apple has trailed behind several competitors in the AI race. This partnership with Google could help the company regain momentum and restore investor confidence in its innovation pipeline.

Dan Ives of Wedbush, a well-known supporter of both Apple and Alphabet, described the agreement as a significant endorsement of Google's Gemini and a crucial step forward for Apple, especially after delays in launching some of its anticipated AI features. Apple had initially indicated that its AI-powered Siri might arrive as early as last spring, but later postponed the launch to this year.

Analysts at JPMorgan, who maintain an "overweight" rating on Apple, believe this multi-year deal with Google could evolve into a longer-term partnership. Investors are also watching to see if Apple will announce a similar AI collaboration in China.

Ives added, "We think the market is underestimating what Apple could achieve by 2026," expressing optimism that the company will make substantial progress in AI this year. He reaffirmed his bullish price target of $350 for Apple shares, implying a potential gain of nearly 35% from Monday's closing price.