Apple shares slide after Siri AI reveal

What happened: Apple (AAPL) unveiled next-generation Siri AI at WWDC on June 9. The update, powered by Apple's new Foundation Models and integrated with Google's Gemini, was met with investor skepticism. Apple shares fell 3% on June 9, closing at $290.55. Analysts from UBS and Bank of America expressed doubts about the upgrade's impact on iPhone sales and upgrades.

Market impact: The Siri AI reveal has driven a 3% decline in Apple's stock price, wiping out around $25 billion in market capitalization. The bearish sentiment is due to concerns that the AI upgrade may not spark a new iPhone upgrade cycle, as previously anticipated. This could impact Apple's supply chain and valuation, with investors now questioning the company's AI strategy.

What to watch next: On June 22, Apple will report its fiscal Q3 earnings. Investors will closely watch iPhone sales and guidance to gauge the impact of the Siri AI update on upgrade activity. Additionally, the outcome of Apple's discussions with European regulators regarding Siri AI's expansion into Europe will provide further clarity on the company's AI strategy and potential growth opportunities.