Analyst Forecasts AI Push Could Add $75 Per Share to Apple Valuation
Analyst Dan Ives has maintained an Outperform rating and a $400 price target on Apple Inc. (NASDAQ:AAPL), projecting that the company's artificial intelligence initiatives could add roughly $75 per share to its valuation. The integration of artificial intelligence is expected to drive growth across both hardware and services, with AI-related revenue potentially accounting for over 15% of the company's Services segment over time.
The outlook is supported by a substantial upgrade opportunity, as approximately 375 million iPhones have not been upgraded in at least four years. This large base of users with older devices represents a significant pool of potential buyers who may choose to replace their phones as artificial intelligence capabilities expand. On Thursday, Apple shares traded slightly up at $338.20, representing a 0.46% daily gain.
Market participants will be watching the upcoming iPhone 18 product cycle to see if it sustains device demand in the coming quarters. Additionally, the launch of a foldable model, the iPhone Duo, is being monitored as another potential catalyst, with projections pointing to sales of about 10 million units over the next several quarters.
Key points
- An analyst projects that Apple's artificial intelligence initiatives could add about $75 per share to its valuation.
- AI-related revenue is estimated to eventually make up more than 15% of Apple's Services revenue.
- An estimated 375 million iPhones have not been upgraded for four or more years, creating a large pool of potential buyers.
- The upcoming iPhone 18 cycle and the foldable iPhone Duo are highlighted as key catalysts for future demand.
- The analyst maintained an Outperform rating and a $400 price target for the stock, which traded at $338.20 on Thursday.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
How much could AI add to Apple's stock valuation?
An analyst estimates that Apple's artificial intelligence push could add about $75 per share to its valuation.
How many iPhones are currently overdue for an upgrade?
Approximately 375 million iPhones have gone at least four years without being upgraded, representing a large pool of potential buyers.
What is the analyst's price target for Apple stock?
The analyst has maintained an Outperform rating and a $400 price target on Apple stock.