Apple Inc.'s (NASDAQ:AAPL) long-awaited unveiling of its AI strategy at the Worldwide Developers Conference (WWDC) 2024 has Wedbush's Dan Ives excited.

What Happened: The "AI Revolution" has finally arrived in Cupertino, a ccording to Ives after Apple laid out its AI strategy at WWDC 2024.

The news was initially met with a delayed but positive reaction from investors, who are now beginning to grasp the potential impact of this move on the consumer market.

Ives believes Apple's AI strategy is expected to trigger a significant upgrade cycle for the company, with an estimated 270 million iPhones in the global installed base not having been upgraded for over four years.

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

Additionally, the development of AI-based apps on Apple's platform is predicted to create a new AI App Store, fundamentally changing how consumers interact with generative AI while creating a new revenue stream for Apple.

Ives reiterated his belief that Apple's massive consumer base gives it a unique advantage to capitalize on the AI Revolution.

A Day After Shutting Down Tesla Phone Rumors, Elon Musk Says It Is 'Not Out Of The Question'

Looking ahead, Ives thinks that the race to a $4 trillion market capitalization in the tech industry is expected to intensify, with Nvidia Corp. (NASDAQ:NVDA), Microsoft Corp. (NASDAQ:MSFT), and Apple taking the lead.

Ives likened Nvidia's GPU chips to gold or oil but noted that Apple's AI announcements will trigger a "long-awaited super cycle in Cupertino" with 270 million iPhones that haven't been upgraded in the last four years being the prime candidates for an upgrade now.

Why It Matters: The AI features unveiled by Apple at WWDC 2024 have been predicted to drive growth beyond current estimates by Gene Munster, the managing partner at Deepwater Asset Management. Munster suggested that these features could prompt Apple's user base to upgrade their hardware more frequently, potentially exceeding estimates over the next few years.

Ives also praised Apple's venture into AI, calling it a game-changer. He believes that the company's announcements related to ChatGPT-parent OpenAI and privacy, among others, have set a strong foundation for developers.

However, not all analysts are convinced. Despite lauding Apple's AI and ecosystem integration advancements, analyst Ming-Chi Kuo indicated that investors are seeking more substantial developments.

Price Action: Apple shares surged to a record-high on Wednesday after DA Davidson upgraded the stock, following a series of announcements at WWDC. Apple's shares were trading 3.14% higher at the time of writing, at $214.18, according to Benzinga Pro.

Check out more of Benzinga's Consumer Tech coverage by following this link.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Apple