Investing.com -- Wedbush raised its price target on Apple Inc (NASDAQ:AAPL) to $325 from $300 banking on transformative AI-driven iPhone upgrade cycle poised to fuel growth into 2025. The brokerage maintained its "outperform" rating, projecting Apple’s market cap to cross the $4 trillion mark.
“We believe Apple is heading into a multi-year AI driven iPhone upgrade cycle that is still being underestimated by the Street,” analyst wrote.
The anticipated AI rollout, including features like Genmoji and ChatGPT integration in Siri, is expected to catalyze a multi-year growth phase. Wedbush estimates these advancements will drive consumer adoption and add billions in annual services revenue, bolstering Apple’s ecosystem.
With over 2 billion iOS devices and roughly 300 million iPhones ripe for upgrades, Apple is positioned for a potential supercycle. Wedbush forecasts iPhone unit sales could surpass 240 million in fiscal 2025, marking the highest in Apple’s history.
The firm sees Apple's AI-driven strategy as a pivotal shift, further solidifying its dominance across hardware, software, and services.
“Rome wasn't built in a day and neither will Apple's AI strategy but the seeds of that strategy with Apple Intelligence are now forming and will transform the Apple consumer growth narrative over the coming years.”