Apple Stock Hits Record High as Analysts Hike Price Targets on AI Optimism

Apple (AAPL) banal touched a grounds precocious successful intraday trading Monday arsenic nan tech elephantine received price-target increases from analysts who cited nan company's beardown position for nan early of artificial intelligence (AI) usage connected smartphones.

Analysts from Loop Capital and Morgan Stanley each raised their value targets Monday, pinch Loop Capital analysts besides upgrading Apple banal to "buy" from "hold," while bumping their price target to $300, from $170 previously.

Apple shares were up 1.8% astatine $235.75 successful caller trading, aft rising to an all-time precocious of $237.23 early successful nan session.

New iPhone Could Make Apple GenAI 'Base Camp'

Loop analysts drew a comparison Monday to really nan first iPods went connected to make Apple nan ascendant unit successful euphony and integer contented and really nan first iPhones coincided pinch nan emergence of social media. Similar to those advances, nan analysts wrote that Apple's caller AI-powered iPhones and iPads could make Apple nan generative AI "base camp" for users arsenic nan devices' generative AI services turn much powerful.

The emergence of integer contented and societal media were "material banal catalysts" that helped Apple's banal emergence substantially complete time, and Loop analysts said generative AI could beryllium a akin driving force.

Morgan Stanley analysts besides wrote Monday that Apple's generative AI efforts will beryllium a "clear catalyst" to income for some iPhones and iPads, projecting that Apple could waste up to 500 cardinal iPhones complete nan adjacent 2 years, according to Reuters. Morgan Stanley analysts lifted their value target for Apple to $273 from $216, Reuters reported.

Apple Pivots to AI

The iPhone shaper has made a number of moves arsenic it increases its focus connected nan AI space for future iPhone and iPad releases, from acquisitions to deals pinch ChatGPT shaper OpenAI.

AI was besides a cardinal constituent of past month's Worldwide Developers Conference (WWDC), arsenic nan institution debuted its ain "Apple Intelligence." Optimism complete nan WWDC announcements besides drove Apple's banal to record highs successful June.