Apple stock hits all-time high on AI-powered iPhone sales optimism
Where shares of Apple Inc. have been hitting record highs as investors signal a stronger belief in the future for iPhone maker using AI. What is causing the rally and why are analysts so optimistic on Apple growth potential.
Apple Shares Soar to Record Highs, Fueled in Part by AI Hype
The rally pushed Apple’s stock up 2.7% to $237.49, and the shares have now passed their previous peak set in July by just a couple of cents. The recent rally has locked Apple as the first U.S. company over a market cap of $3.6t The stock, which has skyrocketed 37% over the last six months, far outpaced a corresponding gain of only 15.5% from Nasdaq.
Apple — A New Growth Outlook with Artificial Intelligence (AI)
Apple stock has soared recently, largely due to anticipation of the introduction last month AI iPhones. Investors will feel reassured if the inclusion of artificial intelligence in its flagship iPhone can drive a big upgrade cycle that meaningfully spurs sales as well as revenue growth.
Along with this news, Apple also announced its new iPad mini2 which is similarly equipped to achieve AI functionality — thus furthering supporting evidence that the company indeed has an aim towards launching more and more devices powered by greater AI- drive.
Analyst Support: Greater Confidence On Apple
Ahead of Apple’s quarterly earnings announcement later this month, Evercore ISI is making a tactical outperform trading call on the stock. The firm notes that it does have a “few worries” about the Chinese smartphone market, but believes they are manageable. Solid upgrade demand in the U.S. and growth across developing markets should offset potentially negative headwinds from China, Cowen argues.
This view is shared by Melius Research, which sees Apple as a buy; emphasizing the iTunes treasure trove of gold and —yes unparralleled repurchase. This is part of what fuels the firm’s multi-year growth cycle for the iPhone, and hence continued roll-up in stock price.
Initial Demand Indications: Mixed Signals But Bullish Investor Sentiment
Although some initial reports have suggested that demand for the new AI-powered iPhone may be tepid, there is still a lot of optimism about what Apple can do with this technology. Others see Apple as a safety play given the macroeconomic backdrop, and believe that stronger revenues lie ahead after what should be its biggest upgrade cycle in years.
Apple Stock: The Bigger Picture (& Why It Will Keep Going Up)
Some analysts think Apple, with its ability to innovate through AI-based features and such a strong brand following in certain geographies at least will continue relatively unscathed. With low investor expectations ahead of the quarterly earnings report, there could be room for tech Juggernaut to beat estimates and continue its advance.
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