courtesy: Apple
The iPhone maker’s shares jumped 2.5% to a record high on Monday after Morgan Stanley boosted its price target and named it a “top pick,” citing AI’s boost to gadget sales.
Last month, the iPad manufacturer introduced Apple Intelligence to compete with Alphabet’s Google and Microsoft-backed OpenAI. Customers were encouraged to upgrade their devices to use the new technology.
Apple’s shares gained over 20% this year to $236.30, giving it the world’s largest market worth of $3.62 trillion.
Morgan Stanley analysts said “Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments.”
The experts predicted Apple may sell over 500 million iPhones over the next two years because the new technology is compatible with only 8% of iPhone and iPad devices and users use 1.3 billion cellphones.
Morgan Stanley boosted its price estimate on Apple shares to $273 from $216, expecting to sell 230 million to 235 million iPhones annually over the next two years.
LSEG data shows that the stock has beaten the S&P 500 index this year and has an average recommendation of “buy” with a median price target of $217.
Since GenAI-enabled smartphones are popular, analysts expect Samsung and Apple to lead the global smartphone market recovery this year.
According to IDC data, Apple sold 45.2 million smartphones worldwide in the three months ending June, up from 44.5 million a year earlier, but its market share slipped to 15.8% from 16.6%.
Comment Template