TLDR:
- Apple stock hits a new high as investment firms increase price targets.
- Analysts predict Apple could reach a market cap of nearly $5 trillion with the release of AI iPhones.
Apple’s stock price reached a new record high on Monday after two investment firms raised their price targets for the company. This positive push for Apple stock comes ahead of the highly anticipated release of generative artificial intelligence iPhones. The rise in stock price coincided with a 33% year-over-year growth in Apple’s India sales, indicating global growth potential for the company. Analysts at Loop Capital and Morgan Stanley also expressed bullish sentiments about Apple’s earnings potential as the release of AI iPhones approaches.
The Loop Capital analysts upgraded their recommendation for Apple stock from a hold to a buy, setting a price target of $300, while the Morgan Stanley group named Apple their favorite U.S. IT hardware pick with a target of $273. Both firms see significant upside potential for Apple as the company prepares to debut its AI iPhones.
Apple officially announced its plans for “Apple Intelligence” generative AI on June 10, which includes integrating the ChatGPT chatbot into the iOS operating system. The stock has risen more than 20% since the announcement, outperforming the S&P 500. Investors are buying into Apple’s AI vision, leading to a surge in stock price.
While analyst forecasts suggest weak quarterly iPhone sales, consensus forecasts for the holiday quarter are optimistic, with record iPhone revenues expected. Overall, Apple is poised for significant growth as it ventures into the AI iPhone market, potentially reaching a market cap close to $5 trillion.