Apple’s stock hit a record high as Morgan Stanley’s increased price target and “top pick” status highlighted AI’s potential sales impact.
To compete with Google and OpenAI, Apple recently introduced Apple Intelligence, enticing users to upgrade for access.
Apple’s shares surged almost 20% this year to $236.30, achieving a market value of $3.62 trillion, surpassing all others globally.
“Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments,” Morgan Stanley analysts stated.
The new technology works with just 8% of iPhone and iPad models. Analysts noted Apple’s 1.3 billion smartphones in use, predicting sales of nearly 500 million iPhones in two years.
Morgan Stanley, forecasting 230-235M iPhone sales, increased Apple’s share target to $273 from $216.
The stock, rated “buy” with a $217 price target, has surpassed the S&P 500 this year, per LSEG data.
Samsung and Apple are poised to drive global smartphone market recovery in 2024 with GenAI-enabled devices. Industry analysts predict.
Apple sold 45.2 million smartphones in Q2, a slight increase from last year’s 44.5 million, yet its market share dropped to 15.8% from 16.6%, as per IDC.
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