NEW YORK, Aug 23 (Reuters) - Billionaire hedge fund

manager Daniel Loeb sees room for Apple's ( AAPL ) stock price

to climb, especially if the technology company successfully

harnesses artificial intelligence for its iOS mobile operating

system.

"Despite the stock's recent strong appreciation, we

see room for significant upside ahead as the magnitude of this

new AI opportunity surprises," Loeb wrote to his investors in a

letter seen by Reuters on Friday. Third Point built a position

in Apple ( AAPL ) in April, Loeb wrote.