Owners of Apple stock probably just saw their Christmas present.
On December 23 Apple (AAPL) it jumped to a record high of $255.65 after the opening bell.
After reaching that milestone, Apple shares closed at $255.27. The stock is up 32.6% so far this year, outperforming the S&P 500 and Nasdaq Composite indexes.
Earlier this month, Apple released iOS 18.2, a major software update that introduces advanced ai capabilities, including customizable emojis and ChatGPT support built into Siri and writing tools.
Apple hopes its new artificial intelligence technology, Apple Intelligence, will drive a wave of phone upgrades. The features are only available on the iPhone 16 and last year's iPhone 15 Pro.
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Apple analyst sees strong holiday season, boosted by ai upgrade
In a Dec. 22 Wedbush research note, analyst Daniel Ives said demand for the iPhone 16 since its launch in September is slightly ahead of schedule and generally in line with expectations and that “Apple will have a strong holiday season for ahead as the iPhone 16 is updated. throughout its installed base are trending well into Christmas.
“Importantly, Apple Intelligence has not been rolled out in China or many other countries, with April being the likely timeline for these ai launches along with a Chinese technology partner also named very soon to catalyze the timing of this launch in this key region. “, the analyst said.
Wedbush maintained an Outperform rating and $300 price target on Apple shares.
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Last week, Reuters reported that Apple was in discussions with Chinese tech giants Tencent. (TCEHY) and ByteDance to integrate their ai models into iPhones sold in China.
Wedbush says Apple bears have underestimated three key factors: its unparalleled base of 2 billion iOS devices, including roughly 300 million iPhones that have yet to be updated; a $2 trillion services business that monetizes its broad customer base; and Apple's dominant role in consumer ai, with 20% of the world's population expected to interact with ai on Apple devices.
“This will be a multi-year journey in ai that will define Apple's future with its next-generation chip architecture, hardware launches and future iPhone models built around the foundation of ai that many consumers will eventually adopt.”
Apple with $4 trillion market cap by early 2025: Wedbush
Apple emerged from its recent decline in iPhone sales during the summer quarter.
iPhone sales reached $46.22 billion in the three months ended September 28, up 6% from the same period a year earlier, according to Apple's fiscal fourth-quarter report released at the end of October.
This growth ended a streak of two consecutive quarters of year-over-year declines in iPhone sales.
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Apple CEO Tim Cook said iPhone 15 sales were “stronger than 14 in the prior-year quarter, and 16 was stronger than 15,” CNBC reported.
“Apple could sell over 240 million iPhone units in FY25 as this ai-driven refresh cycle takes hold and this will be the biggest iPhone unit sales year in Apple's history,” he said. Wedbush.
The iPhone remains Apple's largest revenue generator, accounting for approximately 48.7% of the company's total sales in the most recent quarter.
Wedbush says Apple will reach a market capitalization of $4 trillion by early 2025, “the first member of this exclusive club,” the analyst said.
As of December 23, Apple's market capitalization was approximately $3.86 trillion, surpassing Nvidia's $3.42 trillion and Microsoft's $3.32 trillion.
More ai actions:
- Top Analyst Revises Micron Stock Price Target Ahead of Q1 Earnings
- Analysts renew Ciena stock price target after ai outlook
- Cathie Wood Buys $30 Million in Under-the-radar ai stocks
The iPhone maker reported fiscal fourth-quarter adjusted earnings per share of $1.64, above Wall Street's $1.60 forecast. Revenue was $94.93 billion, up 6% and beating the consensus estimate of $94.58 billion.
In its latest earnings call, Apple said it expected percentage sales growth in the “low to mid-single digits” for the December quarter.
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