After unveiling its new AI software, Apple's stock price reaches a record high.

• On Tuesday, Apple shares experienced a 5% increase, reaching a new record high of approximately $203 per share, surpassing their previous record set in December.
• At its annual developer conference on Monday, the company revealed its long-awaited expansion into AI technology.
• Since the new AI features are only accessible on newer models, analysts predict that consumers will be motivated to upgrade their devices in order to utilize these advanced tools.

On Tuesday, shares of the company reached a new record high of around $203 per share, a 5% increase from the previous day, following the company's announcement of its long-awaited push into artificial intelligence at its annual developer conference on Monday.

During the event, Apple unveiled several new AI features, including an updated Siri, integration with ChatGPT, writing aids, and customizable emojis. The company marketed the features as user-friendly AI technology, although users may need to upgrade their iPhones to utilize the tools.

On Tuesday, Apple surpassed its previous record from Dec. 14 with its share move, providing a positive outlook for investors eager to see how the company will leverage the ongoing AI boom through its developer conference.

According to Morgan Stanley analysts, Apple's AI features set the company apart as the leader in the consumer digital agent market. Furthermore, the analysts predict that these features will motivate consumers to upgrade their iPhones, thereby speeding up device replacement cycles.

Although Apple must still deliver when the AI features are first available in the fall, there is a belief that the "foundations are laid for a resurgence and continued excellence."

The analysts wrote in a note Tuesday that they have even greater conviction that Apple is on the cusp of a multi-year product refresh that underpins their OW rating, $216 price target, and $270 bull case valuation, following a WWDC that delivered on the key details they were focused on heading into the event.

Bank of America analysts were optimistic about Apple's announcements and predicted that the features will lead to an upgrade cycle for AI-enabled iPhones. They maintained their buy rating on the stock due to the promise of a multi-year upgrade cycle, potential for gross margin upside, and services growth.

Apple's AI strategy is expected to boost user device upgrades, according to Evercore analysts who expressed "increased confidence" in the company's AI strategy after attending a conference.

The analysts' conviction that AI can drive an iPhone super cycle is strengthened by limiting Apple Intelligence to iPhones sold within the past year, they stated in a Monday note.

--CNBC's Michael Bloom contributed to this report