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Wedbush analysts, who kept an Outperform rating on Apple (NASDAQ:AAPL), boosted their price target on the stock to $325 from $300. Spearheaded by Daniel Ives, the analysts pointed to a potential multi-year artificial intelligence-driven iPhone upgrade cycle they feel the market is currently not pricing in at this point.
Through Apple Intelligence, Apple's AI platform, Wedbush projects the launch of hundreds of AI-powered apps that may provide a new multi-billion dollar yearly service income stream. This, together with hardware improvements, should result in a notable expansion throughout the next 12 to 18 months.Supported by the iOS 18.2 update, which includes Genmoji, Siri's integration with ChatGPT, and AI-enhanced photography tools, the company projects Apple to reach a $4 trillion market valuation. With around 600 million iPhones past due for replacement, supply chain signals from Asia point to a historically robust iPhone upgrading cycle.
Wedbush forecasts Apple's largest sales year everperhaps 240 million iPhones sold in fiscal 2025. With 100 million iPhones in China alone probably fit for upgrades, Chinese consumers account for the lion's share of this potential. As Apple incorporates artificial intelligence into its environment, the research emphasizes a transformative time for the company.
This article first appeared on GuruFocus.