Apple stock rose Tuesday on a news report that the iPhone maker has partnered with e-commerce firm Alibaba to bring AI services to its devices in China.
The Information reported that Apple and Alibaba have already submitted the Chinese AI features they codeveloped for approval by China's cyberspace regulator.
Apple previously worked with Baidu but was dissatisfied with the AI models the Chinese search giant had developed for Apple Intelligence, the Information said. Apple also had considered AI models from China's Tencent, ByteDance and DeepSeek, the report said.
Apple's iPhone sales have been weak in China recently in part because it has yet to roll out Apple Intelligence there. That factor weighed on Apple's fiscal first-quarter results and guidance last month. Apple says it plans to introduce AI features in non-English speaking markets, including China, in April.
On the stock market today, Apple stock rose 2.2% to close at 232.62. Alibaba's U.S. shares advanced 1.3% to 112.78. Baidu stock dropped 4.7% to 89.44.
Apple and Alibaba are both on the IBD Tech Leaders list.
Positive News For Apple Stock
Evercore ISI analyst Amit Daryanani cheered the partnership news.
"We view this as a positive for Apple given their commentary on the recent earnings call that iPhone sales have been stronger in markets where AI features are available," Daryanani said in a client note.
He added, "China has become a more competitive market in recent quarters, so it is encouraging to see some positive developments given many expected securing regulatory approval for AI features to be a challenge."
Daryanani reiterated his outperform rating on Apple stock with a price target of 260.
More Apple Stock News And Analysis
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