Apple to use new M4 chips in Mac products: Bloomberg

Shares of Apple (AAPL) are rising after a report from Bloomberg revealed that the company was nearing production on its M4 processors which will have AI processing capabilities. The company plans on updating all Mac models with the processors. Furthermore, according to the report, the company will highlight the new chips' AI capabilities by integrating it with the next version of the macOS (operating system).

Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the latest development for Apple and what it could mean for the iPhone maker moving forward.

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This post was written by Nicholas Jacobino

Video Transcript

JOSH LIPTON: Apple reportedly preparing to overhaul its entire Mac line with AI focused M4 chips. This is according to Mark Gurman over there at Bloomberg, Julie. So it was actually interesting, because there was a couple different headlines today really about Apple. And what connected them was Apple's big switch to in-house chips, right, which that started in around 2010, and it has been a very successful strategy for Tim Cook's company.

So Bank of America was out with a note today too, and that's what they were drilling on. Investors are underestimating Apple's margins, B of A says they're going to move higher. And in part, they say like on the product side, because Apple is now doing more with in-house chips. They think Apple is going to do its own modem as well. They see that as a tailwind. Same is true for this Bloomberg story on the Mac. Bloomberg reporting listen, Apple is looking to overhaul the Mac line. New family of in-house AI processors on the way.

JULIE HYMAN: It also feels like the investors are desperate to hear something from Apple on anything AI and more clarity around AI. So if the idea is that these chips will put more AI capabilities into the Macs, maybe that's the catalyst that they were hungering for. Even if we still don't know exactly when it's happening, the Bloomberg report says could roll out later this year, or has been confirmed by the company.

But still, with the stock down about what 10% this year, this was enough to give a pop today that is the biggest one that we've seen going back to last May. And so it's been a while since we've seen a move in Apple like this. Even as many of its peers among large cap tech have been moving higher on a daily basis by much bigger amounts.

JOSH LIPTON: It's why there's now so much, I think, attention and focus on WWDC, which is Apple's big software in June, and really people expecting Tim Cook and their software Chief Craig Federighi take the stage and investors, at least Bulls, are hoping they're really going to wow them with some AI announcements. We'll see.

JULIE HYMAN: Yeah. We will.