Analysts believe that Apple can use generative AI to stimulate device sales, similar to the success it achieved 15 years ago with the iPhone business in the social media frenzy.
According to the latest forecast from Wall Street,$Apple (AAPL.US)$the target price has been raised again.
On Monday, Loop Capital Markets analyst Ananda Baruah raised Apple's stock target price to $300, becoming the most bullish on Wall Street. $300 is currently the highest target price listed by financial analytics firm FactSet.
On the 15th, Apple's closing price on Nasdaq was $234.40, 28% higher than the target price. The stock has risen 26% year-to-date. As of press time, the stock rose 0.33% in pre-market trading on the 16th.
Analysts are optimistic about the potential for artificial intelligence to drive upgrades for Apple devices. Baruah pointed out that Apple may dominate in the generative AI field, similar to the success it had in the social media frenzy 15 years ago with the iPhone business. About twenty years ago, Apple also drove significant growth in the iPod business through the growth of digital content consumption.
Baruah said that his supply chain team expects iPhone manufacturing and demand to increase. Even after the update cycle caused by expanding demand due to the epidemic, he still believes that generative AI is one of the key driving factors in upgrading Apple devices. In addition, the iPhone 17 expected to be launched in 2025 will introduce a new 'iPhone platform', further promoting device upgrades.
Morgan Stanley analyst Erik Woodring also lists Apple as a top pick and raises the target price from $216 to $273. Woodring is optimistic about the arrival of Apple Intelligence and believes it will help Apple in multiple ways.
It is worth mentioning that although the new artificial intelligence functions are currently only available on the iPhone 15 Pro and its subsequent models, Woodring sees the potential for a 'mini upgrade cycle' for the iPad, as less than a quarter of the iPads currently in use can run Apple Intelligence.
He wrote:
Despite recent changes in investor sentiment and good stock performance, we believe there is further room for Apple's stock to rise, as investors overall still have relatively low allocations to Apple stock.
Edited by Jeffrey