Key Takeaways
- Apple shares hit a record high on Monday morning after analysts upgraded the stock.
- Analysts at Loop Capital raised their target price for Apple on the optimism that the new iPhones will solidify Apple’s position as “base camp” for many consumers using generative AI.
- Loop analysts compared the potential of generative AI to previous drivers of stock price growth, such as digital media with the first iPod and social media with the first iPhone.
Apple (AAPL) shares hit a record high in intraday trading on Monday after analysts raised their price targets, noting the company’s strong position on the future use of artificial intelligence (AI) in smartphones.
Analysts at Loop Capital and Morgan Stanley each raised their price targets on Monday, with Loop Capital analysts upgrading Apple shares to a “buy” rating from a “hold” rating and raising their price target to $300 from $170 previously.
Apple shares rose 1.8% to $235.75 in recent trading after rising to an all-time high of $237.23 earlier in the session.
New iPhone could become “base camp” for Apple GenAI
Loop analysts on Monday compared how the first iPod made Apple a dominant force in music and digital content, and how the first iPhone arrived at the same time as the rise of social media. As well as these advancements, the analysts wrote that Apple’s new AI-powered iPhones and iPads could become “base camp” for users for generative AI as the devices’ generative AI services become more powerful.
The rise of digital content and social media has been a “significant stock upside driver” that could drive Apple’s stock price higher over time, and Loop analysts said generative AI could be a similar driver.
Morgan Stanley analysts reported Monday that Apple’s AI-generating efforts will be a “clear catalyst” for iPhone and iPad sales, predicting that the company could sell up to 500 million iPhones over the next two years. Reuters. Morgan Stanley analysts raised their price target on Apple to $273 from $216. Reuters report.
Apple shifts focus to AI
The iPhone maker has been making a number of moves to ramp up its focus on AI for future iPhone and iPad releases, from acquisitions to a deal with ChatGPT maker OpenAI.
AI was also a key element at last month’s Worldwide Developers Conference (WWDC), where the company unveiled its proprietary “Apple Intelligence.” Optimism surrounding the WWDC announcements helped Apple’s stock hit an all-time high in June.
