Apple’s shares reach a record high following Morgan Stanley’s increased price target and recognition of the company’s AI initiatives. Learn more about Apple’s market performance and future prospects.
United States, Bollywood Fever: Apple’s shares surged to a record high on Monday, climbing 2.5% after Morgan Stanley raised its price target for the tech giant and highlighted its advancements in artificial intelligence as a significant driver for future sales.
Morgan Stanley’s optimistic outlook comes on the heels of Apple’s recent unveiling of Apple Intelligence, an AI technology designed to entice customers to upgrade their devices. This move is seen as Apple’s effort to catch up with competitors like Google’s Alphabet and Microsoft-backed OpenAI.
With shares reaching $236.30, Apple now boasts a market value of $3.62 trillion, solidifying its position as the world’s most valuable company. “Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments,” Morgan Stanley analysts commented, pointing to the potential increase in device sales driven by the new AI technology.
Currently, Apple Intelligence is compatible with only 8% of iPhone and iPad devices. Considering Apple’s massive installed base of 1.3 billion smartphones, analysts predict the company could sell nearly 500 million iPhones over the next two years. This optimistic forecast prompted Morgan Stanley to revise its previous estimate of annual iPhone sales from 230-235 million units to a higher range, raising its price target on Apple’s shares from $216 to $273.
The stock has an average rating of “buy” with a median price target of $217, and it has outperformed the S&P 500 index this year, according to LSEG data. Industry experts anticipate that both Apple and Samsung will lead the global smartphone market recovery this year, driven by the excitement surrounding GenAI-enabled smartphones.
In the three months ending June, Apple sold 45.2 million smartphones globally, a slight increase from 44.5 million units sold during the same period last year. However, despite the uptick in sales, Apple’s market share dipped to 15.8% from 16.6%, according to IDC data.
As Apple continues to innovate and integrate advanced AI capabilities into its devices, the company is well-positioned to capitalize on the growing demand for smart technology. With strong market performance and positive projections from analysts, Apple’s future looks promising as it continues to set new benchmarks in the tech industry.
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