Apple’s stock rally was seen where it rose 2.5% to a record high on Monday after Morgan Stanley raised its price target on the iPhone maker’s shares. Morgan Stanley designated the stock as a “top pick,” citing the company’s AI efforts as a boost to iPhone sales.
In what was seen as a move to catch up with Alphabet’s Google and Microsoft-backed OpenAI, the iPad maker last month unveiled Apple Intelligence, luring customers to upgrade their devices to be able to use the new technology.
Apple stock rally
Apple’s share price, which have jumped nearly 20% this year, rose to $236.30, giving the company a market value of $3.62 trillion, the highest in the world.
“Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments,” Morgan Stanley analysts said.
AI technology to iPhone boost
The new technology is compatible with only 8% of iPhone and iPad devices and Apple has 1.3 billion units of smartphones currently in use by customers, the analysts said. Th analyst added that the company could sell nearly 500 million iPhones over the next two years.
Global smartphone market recovery
Industry analysts expect Samsung and Apple to lead the charge in global smartphone market recovery this year given the buzz around GenAI-enabled smartphones.
About 45.2 million smartphones were sold globally by Apple in the three months ending June, up from 44.5 million a year earlier. But its market share fell to 15.8% from 16.6% in the same period, according to IDC data.
Apple share price target
Apple share price, which have jumped nearly 20% this year, rose to $236.30. This gave the company a market value of $3.62 trillion, the highest in the world.
Morgan Stanley, which previously expected Apple to sell between 230 million and 235 million iPhones annually over the next two years, raised its price target on the company’s shares to $273 from $216.
The stock has an average rating of “buy” with a median price target of $217. It has outperformed the S&P 500 index (.SPX), opens new tab this year, according to LSEG data.
