NEW YORK, Jan 12, 2026, 16:21 ET — After-hours
- After the close, Apple shares inched up about 0.3%, with Alphabet gaining nearly 1%.
- Google revealed that Apple plans to integrate Gemini models into a redesigned Siri, signaling a stronger reliance on external AI for the iPhone maker.
- Traders are watching for follow-through on Tuesday, seeking clearer signals before Apple’s upcoming earnings report.
Apple Inc shares climbed 0.3% to $260.24 in after-hours trading Monday, as investors digested news of a new AI deal connected to Siri. Alphabet gained roughly 1%, while the Nasdaq-tracking Invesco QQQ and the SPDR S&P 500 ETF Trust showed little movement.
This deal is crucial as Apple finds itself caught in an awkward spot within the AI trade. The company boasts a huge user base and strong cash flow, yet it hasn’t launched a headline-grabbing AI product like some of its competitors.
Siri stands out as the key pressure point. If Apple manages to make the assistant smarter while maintaining its privacy stance, it could drive more upgrades and lock users deeper into its ecosystem. Fail at that, and investors will keep questioning why Apple is paying for AI instead of leading the charge.
Google revealed that Apple plans to integrate its Gemini models into a revamped Siri later this year, in a multi-year agreement. This move puts Google’s AI in front of Apple’s massive user base—over two billion active devices worldwide. Financial details weren’t shared. “After careful evaluation, Apple determined Google’s AI technology provides the most capable foundation for Apple Foundation Models,” Google said, referring to the large AI systems powering software features. Apple Intelligence will continue operating on Apple devices and within Apple’s “Private Cloud Compute” platform. Parth Talsania, CEO of Equisights Research, noted the change “shifts OpenAI into a more supporting role.” Meanwhile, Tesla CEO Elon Musk posted on X warning of “an unreasonable concentration of power for Google.” Alphabet’s market capitalization topped $4 trillion on Monday. (Reuters)
Traders are weighing a more straightforward issue: does the AI buzz sync with the core hardware cycle? Historically, the market has favored Apple when iPhone demand appears solid but turned cautious whenever the upgrade pattern becomes unclear.
On Monday, an industry update showed global smartphone shipments climbed 2% in 2025. Apple took the lead with a 20% market share, followed by Samsung at 19%, and Xiaomi holding 13%, according to Counterpoint Research. But the outlook for 2026 looks shaky. The firm warned chip shortages and higher component costs could weigh on the market, as chipmakers shift focus toward AI data centers instead of smartphones. (Reuters)
Wall Street responded positively, though without much fanfare. Wedbush analyst Daniel Ives maintained his outperform rating on Apple and kept a $350 price target, noting the company’s shift could “accelerate its AI strategy into 2026 and beyond,” according to a report on Nasdaq. (Nasdaq)
That said, Apple isn’t off the hook. It must deliver the upgraded Siri on schedule, show that users see the difference, and steer clear of any privacy or trust issues that could grab headlines for all the wrong reasons.
Traders will be watching if Apple’s modest gains on Monday stick and whether Alphabet can maintain its recent buying interest. On a wider scale, the market remains focused on one key question: AI “distribution” deals sound promising, but will they translate into real products and tangible results?
Apple’s fiscal first-quarter earnings drop after the close on Jan. 29, followed by a conference call at 5 p.m. ET. Traders will zero in on iPhone sales, growth in services, and updates on the Gemini-powered Siri launch timeline. (Apple)
