Apple (AAPL) shares are trading higher after the tech giant is reportedly joining the artificial intelligence chip race. Yahoo Finance's Madison Mills reports more on the story and why this could be good news for investors.

Mills points out the changing landscape Apple faces as iPhone sales continue to slump. "Apple can't rely on the iPhone that much longer," she explains, adding that chip development gives investors a more hopeful outlook on the tech giant's future.

Competitors like Meta (META) and Microsoft (MSFT) already use their own chips to fuel artificial intelligence initiatives in their data centers. While Apple may be viewed as late to the game on this front, Mills stresses that its new chip development could bolster the company as a serious competitor to major chip makers like Nvidia (NVDA).

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This post was written by Melanie Riehl