Apple’s stock has surged, once again surpassing Microsoft, driven by heightened expectations surrounding Apple Intelligence. Investment analysts are predicting an iPhone upgrade super cycle, fueling this optimism.
In pre-market trading, Apple’s stock increased by 56 cents to $234.96 per share. At market opening, it further rose to $235.20 per share, positioning Apple’s market capitalization at $3.6 trillion. Meanwhile, Microsoft opened lower at $3.4 trillion, solidifying Apple’s lead, which it gained when the market closed on Monday.
This rise in Apple’s share price follows positive reports from analysts, including Morgan Stanley. The firm has consistently been bullish on Apple, while other analysts have been more cautious. In its most recent report, Morgan Stanley named Apple as its top pick for investors, significantly raising its target price from $216 to $273, specifically due to the potential of Apple Intelligence.
Back in June 2024, JP Morgan also raised its target price for Apple, citing the same reasons. Although their increase was more modest, raising the target price by $20 to $245, it still reflects the positive outlook on Apple's AI advancements.
In July 2024, Wedbush projected a “monumental” upgrade cycle for the iPhone 16 range, driven by AI developments. They predicted Apple’s share price could rise by $30 to $40. Although Wedbush did not raise its target price, it maintained a high target of $275, underscoring its confidence in Apple Intelligence as a strong investment.
Apple is set to announce its latest earnings on August 1, 2024. While none of Apple’s AI initiatives have launched yet, they are expected to begin rolling out gradually to the public following the release of iOS 18 this fall.
With the anticipation of these innovative AI features, Apple’s stock is poised for continued growth, reaffirming its position as a leading player in the tech industry.