Tech titan Apple (AAPL) is reportedly working with Amazon-backed startup Anthropic (AMZN) to develop a new AI-powered “vibe-coding” platform that can help programmers write, edit, and test code, according to Bloomberg News. “Vibe coding” refers to a growing trend where AI agents generate code automatically. This new system is said to be an updated version of Apple’s Xcode programming software and will use Anthropic’s Claude Sonnet AI model to assist developers. In addition, the report suggests that Apple will first use the tool internally, as no decision has been made yet about a public release.
Interestingly, Apple had previously introduced Swift Assist, an AI coding tool for Xcode, which was expected to launch in 2024. However, Swift Assist never reached developers due to internal worries about its potential to slow down app development. Despite this, AI coding assistants continue to gain popularity. Indeed, Bloomberg recently reported that OpenAI is in talks to acquire Windsurf, which is an AI-assisted coding tool, for around $3 billion. This shows just how fast competition is growing among major tech companies in the generative AI space.
In fact, as the competition heats up, Apple is expanding its partnerships with AI firms and adding more on-device AI features to improve its products. The company is also building more powerful chips so it can handle AI tasks, such as using OpenAI’s ChatGPT to answer user questions. These moves show how Apple is trying to make its products more advanced and appealing as AI continues to play a bigger role in consumer technology.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, seven Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $230.65 per share implies 12.3% upside potential.
