Apple Inc. AAPL could ride the artificial intelligence boom, with its crown jewel iPhone expected to witness a "multi-year" upgrade cycle, according to an analyst.
What Happened: Tech bull and Wedbush analyst Dan Ives believes that Apple's iPhone sales could witness a boost thanks to AI.
"Raising price target on Apple to $325 as a golden era of growth for Cupertino is now on the horizon into 2025," said Ives in a post on X.
Apple stock closed at $258.20 on Tuesday, up 1.2% for the day. Year-to-date, Apple shares have gained 39%, according to Benzinga Pro data. Ives’ $325 price target implies a 26% upside.
While Apple has been a little late to the AI game, having been beaten by its rivals Alphabet Inc.'s Google, and Samsung Electronics Co. Ltd., the Cupertino-based company unveiled the Apple Intelligence suite of AI features with the iPhone 16 series in September.
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Ives expects Apple to benefit significantly from the consumer AI revolution, positioning it for substantial growth through 2025.
"We believe Apple is heading into a multi-year AI driven iPhone upgrade cycle still being underestimated by the Street."
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Why It Matters: The recent price target hike aligns with Ives' previous predictions, which foresees Apple reaching a $4 trillion market capitalization by early 2025. This projection is driven by strong iPhone sales and AI innovations.
Recent supply chain checks in Asia indicate robust iPhone 16 upgrade trends, particularly during the holiday season. Ives believes that the success of the iPhone 16 will serve as a launchpad for a renaissance of growth in Cupertino over the next 12 to 18 months.
Furthermore, Ives predicts that Apple will ship a record 240 million iPhones in 2025, setting a new annual record as AI features in the iPhone 16 spark a “multi-year supercycle.” This projection underscores the significance of AI integration in consumer devices, with Apple Inc. leading the charge.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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