Apple’s (NASDAQ:AAPL) annual developer conference next week is expected to mark the beginning of an “AI-driven growth cycle” for the tech company, according to Wedbush Securities. Top analyst Dan Ives is anticipating that Apple will unveil significant AI technology for developers and consumers, which could add $30 to $40 per share to Apple’s growth as it leverages its 2.2 billion iOS devices. Ives, who has an Outperform rating and a $275 price target with an 85% success rate on Apple, believes AI integration will open new monetization opportunities in both services and hardware.
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Furthermore, Ives expects Apple to announce a partnership with Microsoft-back OpenAI (NASDAQ:MSFT) for on-device AI capabilities and possibly reveal cloud-based AI models powered by Apple’s processors. Additionally, Apple might introduce an AI App Store to encourage developers to create consumer-focused apps. However, the real game-changer could be the next iPhone expected in September, as it could come with exclusive AI features that might drive a major upgrade cycle into 2025.
Is Apple a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 22 Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 8.81% rally in its share price over the past year, the average AAPL price target of $207.72 per share implies 6.87% upside potential.
