Renowned tech investor Dan Niles has made a bullish prediction for Apple Inc. AAPL, foreseeing the company’s ascent to the top of the ‘Magnificent Seven’ by the year’s end.
What Happened: Niles, the founder of Niles Investment Management, has attributed this forecast to Apple’s new AI strategy and potential revenue growth, in an interview with CNBC’s Fast Money on Monday.
“I think [Apple] may be the best of all the Magnificent Seven from now to year-end,” Niles said.
He believes the market’s focus on Apple’s revenue reporting has led to its stock underperformance in the past six months.
Niles emphasized that the new AI strategy, which requires the latest Apple devices to drive revenue, could prompt consumers to upgrade their iPhones. He also suggested that, as seen in the GameStop rally, multiples may not be a significant factor as long as earnings and future prospects are strong.
He made a compelling case for Apple’s future growth and explained the factors that could drive the stock even higher.
Why It Matters: Niles’ prediction comes amid Apple’s recent strides in the AI sector. The company unveiled its generative AI efforts for iPhones and iPads at the Worldwide Developers Conference (WWDC), a move that CEO Tim Cook described as the “next big step” for Apple. This development is expected to significantly enhance the user experience across Apple’s product portfolio.
Niles’ prediction comes on the heels of Apple’s strong second-quarter earnings and the announcement of a $110 billion stock buyback program.
However, CNBC’s Jim Cramer has advised investors to consider taking profits from their AI stock holdings, given the sector’s significant gains over the past week. It remains to be seen how Niles’ prediction aligns with the broader market sentiment.
Price Action: Apple Inc. closed at $216.67 on Monday, up 1.97% for the day. In after-hours trading, the stock increased 0.042%, to $216.76. Year to date, Apple has gained 16.72%, according to the data from Benzinga Pro.
Read Next: Apple Supplier Says It Has Made Tech Breakthrough That Could Improve Performance Of Watches, Earbuds
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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