Tech giant Apple (NASDAQ:AAPL) is gearing up to revamp its entire Mac lineup with its latest artificial intelligence (AI)-focused M4 chips, Bloomberg reported. Investors reacted positively to the news, with AAPL stock closing 4.33% higher on Thursday, April 11.
Per the report, Apple is on the verge of introducing its M4 processors, marking a swift update for the iMac and MacBook Pro series. This effort towards AI integration seems strategic, as it has the potential to reignite sales growth, especially considering the declining sales of Apple’s Mac portfolio. Additionally, Apple is preparing to incorporate AI into this year’s iPhone processor, aligning with Apple’s broader product strategy.
Notably, Apple faced criticism for its slow progress in AI advancements. However, Apple’s CEO, Tim Cook, reassured investors about the company’s commitment to AI. Cook expressed confidence in the company’s growth prospects tied to generative AI. To bolster its AI capabilities, Apple acquired DarwinAI, a Canadian AI startup, and plans to partner with Alphabet’s (NASDAQ:GOOGL) Google.
Is Apple a Buy, Hold, or Sell?
While Apple stock closed higher on Thursday, it is still down about 9% year-to-date, underperforming the broader market. Apple stock is under pressure due to several factors, including slowing iPhone demand, lower hardware sales, intensifying competition in China, and growing legal and regulatory headwinds. Moreover, concerns over its AI capabilities keep analysts cautiously optimistic.
Despite challenges, Bank of America Securities analyst Wamsi Mohan reiterated a Buy on Apple stock on April 11. His price target of $225 implies 28.54% upside potential from current levels. Notably, Mohan is a five-star analyst with a success rate of 68% on AAPL stock.
Meanwhile, Apple stock has a Moderate Buy consensus rating based on 16 Buys, 10 Holds, and one Sell recommendation. Analysts’ average price target on AAPL stock is $202.95, which implies 15.94% upside potential from current levels.
