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Wedbush Securities has upgraded its price target for Apple Inc. (AAPL, Financial) from $300 to $325 and also maintained an 'Outperform' rating. Apple's stock price, near its 52-week high of $258.21, trades at a solid 34.4% year return. Wedbush analysts say a new growth phase beckoned for the company, a 'golden era' driven by the expansion of an iPhone upgrade cycle and advanced artificial intelligence.
Wedbush analysts believe Apple is set for more growth as it enters a multi-year cycle of Apple iPhone upgrades with the help of AI investments. At this point, according to the firm, the market misvalues Apple's AI initiatives Apple Intelligence in particular as enough to boost revenue significantly in the years ahead. AI features for Apple's hardware and service products, such as the iPhone 16, are expected to carry the integration onto the Apple side, with such features in the hardware sector and in the services sector.
They also predicted that Apple's AI strategy would complement the rising revenue streams that are bound to power the company into a $4 trillion market cap. Apple is worth $3.9 trillion and is held by the company in a strong financial position with a gross profit margin valued at 46.2%. Like Wedbush's, JPMorgan's positive outlook echoed that Apple relies on artificial intelligence to drive growth.
It's also other news that, in China, Apple is strategizing around creating local AI models that will populate devices.
This article first appeared on GuruFocus.