BofA Securities updated its deep-dive on Apple ( AAPL ) Services segment following Apple, Inc.'s ( AAPL ) recent announcements at its WWDC event to integrate artificial intelligence (AI) into its operating systems. 

The Details: BofA sees the new Apple Intelligence features and AI integrations driving Apple's ( AAPL ) Services revenue 14% higher year-over-year and in-turn pushing the company's overall margin higher in 2024. 

BofA said it expects third-party developer access to AI features including Siri to drive significant growth through innovation.

"We view conversational AI with context and privacy as key to monetization of the installed base of Apple ( AAPL ) devices over time with increased productivity, higher priced Apps, increased subscription and payments from partners," BofA wrote in the research note.

The research firm also sees App Store revenues growing in the mid-to-high single digits through 2026 despite uncertainty surrounding potential impacts from EU DMA regulation. 

According to data from Benzinga Pro, Apple ( AAPL ) shares have gained more than 12% over the past month as the stock as benefits from the company's debut of Apple Intelligence and other AI integration plans. 

Related News: What’s Going On With Snap Stock?

AAPL Price Action: According to Benzinga Pro, Apple ( AAPL ) shares are up 2.48% at $214.25 at the time of publication Wednesday.

Image: Shutterstock