Wedbush analyst Dan Ives saidfamilyarcadenearme, iPhone 16 series products that benefit from artificial intelligence promotion will usher in a "super cycle", Apple (AAPL)familyarcadenearme.US) will exceed US$4 trillion next year.
In a report on Thursday (May 23), Ives raised Apple's price target to $275, which means the stock has 47% room to rise from its current price. He pointed out that Apple's upcoming WWDC event on June 10 is its "most important event in a decade" and that the company is preparing to release a series of AI products.
"We believe that bringing AI to the critical developer community and laying the foundation for bringing generative AI to consumers all starts with Apple," Ives said. He also added that he expected the iPhone maker to announce a partnership with OpenAI.
He also said: "As developers build consumer applications on top of the AI stack that Cook and others will launch at WWDC, Apple will lay the foundation for the AI app store and will bring more service growth in years to come."
All of these features may be integrated into the iPhone 16, which will be released in September. Ives said that as more people upgrade their iPhones, this could trigger a "growth renaissance." He predicts that the iPhone upgrade cycle may exceed 2familyarcadenearme.700 million units.
He was also encouraged by the supply chain channel inspection conducted by Ives's team in China Taiwan over the past week, which showed that Apple's sales in April were about 2% higher than expected.
Ives said: "This further confirmsfamilyarcadenearmeOur view is that Apple's iPhone sales will increase as the much-awaited iPhone 16 upgrade cycle begins in September. We believe that Wall Street's current forecast for fiscal 2025 is somewhat conservative, which is a good start for the upcoming iPhone cycle."
As of Friday's close, Apple was up 1.66% to $189.98.