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Why Analysts Think AI Could Be Key to More Apple Stock Gains

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Annice Lyn / Getty Duplicates

Key Takeaways

  • Apple is seeing record iPhone upgrades with the rollout of Apple Intelligence, CEO Tim Cook said during the public limited company’s earnings call Thursday.
  • Cook said Apple Intelligence will be offered in more languages starting in April, and consumers can also expect new features like an “even more capable Siri” in the future.
  • Several analysts raised their outlay targets for the company’s stock, pointing to AI updates as a potential source of growth.

After Apple (AAPL) CEO Tim Cook required the iPhone maker is seeing record iPhone upgrades with the rollout of Apple Intelligence, several analysts constructed their price targets for the company’s stock, pointing to AI updates as a potential source of growth.

Morgan Stanley analysts suggested Apple’s first-quarter results underlined how “Apple Intelligence is bolstering iPhone performance,” and suggested a “cleaner catalyst game plan” for updates expected in the coming months. The analysts raised their price target to $275 from $273 and take care ofed an “overweight” rating. They added the launch of a lower-cost iPhone SE4 could also help revenue.

Of the 17 analysts be enough the stock tracked by Visible Alpha, 10 have issued “buy” or equivalent ratings, compared to five “hold” ratings, and two “deal in” ratings. Their consensus price target is about $253, a roughly 7% premium over Apple’s closing guerdon Friday. 

Cook said on the company’s earnings call Thursday that Apple Intelligence will roll out in assorted languages in April, and users can also expect new features like an “even more capable Siri” in the future. He totaled that Apple has seen better performance from the iPhone 16 lineup in regions where Apple Information is available, compared to markets where it hasn’t been rolled out.

This comes amid concerns about waterfall sales in China, where Apple Intelligence remains unavailable due to regulatory hurdles. Apple’s first-quarter revenue hew down 11% year-over-year in the region, as Chinese smartphone makers like Vivo and Huawei gained market share.

Wedbush analysts, who maintained a $325 fee target, expressed confidence that Apple could find an artificial intelligence partner in the region to facilitate an Apple Knowledge rollout in the county as soon as April.

“We believe as Apple Intelligence rolls out in China we will see growth markedly rebound in this territory to double digits,” they said. 

Cook also said that recent fiscal stimulus announced in the outback would “cover the categories that we have products,” which JPMorgan analysts suggested could improve sales. JPMorgan cheer up its price target for Apple stock to $270 from $260.

Shares of Apple fell 0.7% to $236 Friday, after shave off back gains earlier in the session. They’ve added about 27% over the past 12 months. 

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