Apple Nears $4 Trillion Valuation, Fueled by AI Optimism and iPhone Sales

Apple Set to Become First $4 Trillion Company

Apple is on the brink of becoming the first company in history to surpass a $4 trillion market valuation, Fortune reports. Apple's stock (AAPL) has nearly risen 40% in 2024. Before the markets opened on December 27, Apple's market capitalization stood at $3.92 trillion, leaving the company just a modest surge in stock value away from the unprecedented milestone. The growth is said to have been fueled largely by optimism surrounding Apple Intelligence and the continued strength of its iPhone upgrade cycles. In a research note published on December 26, Wedbush analyst Daniel Ives said that Apple is entering a "golden era of growth" with its AI initiatives serving as a pivotal driver. Ives increased his price target for Apple's stock to $325, citing the company's ongoing efforts to embed artificial intelligence into its products. He emphasized that Apple's current AI strategy is likely underestimated by the market, adding that the development of hundreds of applications under the Apple Intelligence platform will provide "another growth catalyst along with catalyzing iPhone upgrades across the board over the next 12 to 18 months." We believe Apple is heading into a multi-year AI-driven iPhone upgrade cycle that is still being underestimated by the Street. Rome wasn't built in a day and neither will Apple's AI strategy but the seeds of that strategy with Apple Intelligence are now forming and will transform the Apple consumer growth narrative over the coming years. We estimate that with hundreds of apps in development around Apple Intelligence that in essence creates a new multi-billion annual Services revenue stream will be another growth catalyst along with catalyzing iPhone upgrades across the board over the next 12 to 18 months. We believe Apple is on pace to reach the $4 trillion market cap threshold and be the first member of this exclusive club. JPMorgan analyst Samik Chatterjee also predicts sustained growth for Apple, driven by its ability to expand its installed base of devices, which surpassed two billion active units globally in 2023. Chatterjee pointed to "the transformation of the company to services" and the continued evolution of its product lineup as key factors in its success. He also highlighted Apple's focus on capital deployment, with the company consistently returning value to shareholders through dividends and stock buybacks, which have totaled hundreds of billions of dollars in recent years. Apple's nearest competitors in terms of market capitalization, Microsoft and Nvidia, have also benefited from advancements in AI but trail behind with valuations of $3.26 trillion and $3.43 trillion, respectively. Both companies are investing heavily in their own AI platforms, with Nvidia's GPU technology playing a central role in powering generative AI applications. However, Apple's long-term advantage seemingly lies in its ability to control both hardware and software, potentially allowing it to deliver a superior user experience across its ecosystem.

Apple approaches $4 trillion valuation as investors bet on AI momentum

(Reuters) - Apple is closing in on a historic $4 trillion stock market valuation, powered by investors cheering progress in the company's long-awaited AI enhancements to rejuvenate sluggish iPhone sales. The company has pulled ahead of Nvidia and Microsoft in the race to the monumental milestone, thanks to an about 16% jump in shares since early November that has added about $500 billion to its market capitalization. The latest rally in Apple shares reflects "investor enthusiasm for artificial intelligence and an expectation that it will result in a supercycle of iPhone upgrades," said Tom Forte, an analyst at Maxim Group, who has a "hold" rating. Valued at about $3.85 trillion as of the last close, Apple dwarfs the combined value of Germany and Switzerland's main stock markets. The Silicon Valley firm, driven by the so-called iPhone supercycles, was the first U.S. company to hit previous trillion-dollar milestones. In recent years, the company has attracted criticism for being slow to map out its artificial intelligence strategy, while Microsoft, Alphabet, Amazon and Meta Platforms have pulled ahead to dominate the emerging technology. Shares of Nvidia, the biggest AI beneficiary, have surged more than 800% over the past two years, compared to the near doubling in shares of Apple during the same period. Apple earlier in December started integrating OpenAI's ChatGPT into its devices after unveiling plans in June to integrate generative AI technology across its app suite. The company expects overall revenue to increase "low- to mid-single digits" during its fiscal first quarter - a modest growth forecast for the holiday shopping season - sparking questions about the momentum for the iPhone 16 series. However, LSEG data showed analysts expect revenue from iPhones to rebound in 2025. "Although near-term iPhone demand is still muted ... it is a function of limited Apple Intelligence features and geographic availability, and as both broaden, it will help to drive an improvement in iPhone demand," Morgan Stanley analyst Erik Woodring said in a note, reiterating Apple as the brokerage's "top pick" heading into 2025. The recent surge in shares has pushed Apple's price-to-earnings ratio to a near three-year high of 33.5, compared to 31.3 for Microsoft and 31.7 for Nvidia, according to LSEG data. Warren Buffett's Berkshire Hathaway has sold shares of Apple - its top holding - this year, as the conglomerate broadly retreated from equities on concerns over stretched valuations. "I suspect the stock in three years will not look as expensive as it does today," said Eric Clark, portfolio manager of the Rational Dynamic Brands Fund, which holds Apple shares. Apple faces the risk of retaliatory tariffs if U.S. President-elect Donald Trump delivers on his promise to slap tariffs of at least 10% on goods coming from China. "We believe it's likely Apple gets exclusions on products like iPhone, Mac and iPad, similar to the first round of China tariffs in 2018," Woodring said. Apple's shares tumbled last Wednesday amid a Wall Street selloff after the Federal Reserve forecast a slower pace of rate cuts next year but investors expect the broad trend of monetary easing to support stock markets next year. "Technology has been regarded by investors as a new form of a defensive sector because of their earnings growth," said Sam Stovall, chief investment strategist at CFRA Research. The Fed's action "could end up having a greater impact on some of the other cyclical areas such as consumer discretionary and financials and less so on technology." "Apple's approach to $4 trillion market cap is a testament to its enduring dominance in the tech sector. This milestone reinforces Apple's position as a market leader and innovator," said Adam Sarhan, chief executive officer of 50 Park Investments. (Reporting by Shashwat Chauhan and Medha Singh in Bengaluru; additional reporting by Aditya Soni and Purvi Agarwal; Editing by Sriraj Kalluvila)

Apple poised to break $4T market cap milestone as iPhone sales, AI...

Apple is poised to become the first company to cross the $4 trillion threshold -- powered by investors cheering progress the tech giant's long-awaited AI enhancements to rejuvenate sluggish iPhone sales. The company has pulled ahead of Nvidia and Microsoft in the race to the monumental milestone, thanks to an about 16% jump in shares since early November that has added about $500 billion to its market capitalization. Apple's stock was trading at around $255 a share just after the opening bell on Monday, putting its market capitalization at $3.86 trillion. Shares have soared nearly 40% since Jan. 1. The latest rally in Apple shares reflects "investor enthusiasm for artificial intelligence and an expectation that it will result in a supercycle of iPhone upgrades," said Tom Forte, an analyst at Maxim Group, who has a "hold" rating. Nvidia, whose share price has surged by a whopping 184% since the start of the calendar year, was worth $3.35 trillion as of early Monday morning. But the stock has cooled in recent weeks as investors have grown nervous about the company's switch to a new AI chip, Blackwell, which has been touted as the firm's most powerful graphics processing unit (GPU). Microsoft, one of the biggest backers of ChatGPT maker OpenAI, is third with a market cap of $3.22 trillion. Earlier this month, Apple launched iOS 18.2, a significant software update for its suite of iPhones that includes improvements and features that enhance its Apple Intelligence functions, including Visual Intelligence, which summarizes and translates text. Another AI feature, Image Playground, generates original images from descriptions. The latest AI enhancements are available exclusively to iPhone 15 Pro and iPhone 16 users. The Cupertino, Calif.-based company is expected to generate considerably strong sales of its iPhone during the Christmas shopping season. "We believe Apple is set to have a strong holiday season ahead as iPhone 16 upgrades across its installed base are trending well into Christmas based on our recent Asia supply chain checks," Daniel Ives, senior analyst at Wedbush, wrote in his recent report over the weekend. Ives forecast that Apple's stock will eclipse the $300 per share plateau within the next 12 months and that the company's market capitalization will blow past $4 trillion "by early 2025." "We believe the success of iPhone 16 with a strong holiday season ahead over the next week will be the launchpad for a renaissance of growth in Cupertino over the next 12 to 18 months that kicks off in this December quarter," he wrote. Apple snapped out of a recent iPhone sales slump during its summer quarter, an early sign that its recent efforts to revive demand for its marquee product with an infusion of artificial intelligence are paying off. Sales of the iPhone totaled $46.22 billion for the July-September period, a 6% increase from the same time last year, according to Apple's fiscal fourth-quarter report released in late October. That improvement reversed two consecutive year-over-year declines in the iPhone's quarterly sales.

Apple approaches $4 trillion valuation as investors bet on AI momentum

Apple is nearing a $4 trillion market cap, driven by investor excitement over its AI enhancements. The stock has risen 16% recently. Analysts expect iPhone demand to improve as AI features expand. Apple's valuation is at a three-year high, facing risks from potential tariffs. Tech stocks remain a defensive sector for investors.Apple is closing in on a historic $4 trillion stock market valuation, powered by investors cheering progress in the company's long-awaited AI enhancements to rejuvenate sluggish iPhone sales. The company has pulled ahead of Nvidia and Microsoft in the race to the monumental milestone, thanks to an about 16% jump in shares since early November that has added about $500 billion to its market capitalization. The latest rally in Apple shares reflects "investor enthusiasm for artificial intelligence and an expectation that it will result in a supercycle of iPhone upgrades," said Tom Forte, an analyst at Maxim Group, who has a "hold" rating. Valued at about $3.85 trillion as of the last close, Apple dwarfs the combined value of Germany and Switzerland's main stock markets. The Silicon Valley firm, driven by the so-called iPhone supercycles, was the first US company to hit previous trillion-dollar milestones. In recent years, the company has attracted criticism for being slow to map out its artificial intelligence strategy, while Microsoft, Alphabet, Amazon and Meta Platforms have pulled ahead to dominate the emerging technology. Shares of Nvidia, the biggest AI beneficiary, have surged more than 800% over the past two years, compared to the near doubling in shares of Apple during the same period. Apple earlier in December started integrating OpenAI's ChatGPT into its devices after unveiling plans in June to integrate generative AI technology across its app suite. The company expects overall revenue to increase "low- to mid-single digits" during its fiscal first quarter - a modest growth forecast for the holiday shopping season - sparking questions about the momentum for the iPhone 16 series. However, LSEG data showed analysts expect revenue from iPhones to rebound in 2025. "Although near-term iPhone demand is still muted ... it is a function of limited Apple Intelligence features and geographic availability, and as both broaden, it will help to drive an improvement in iPhone demand," Morgan Stanley analyst Erik Woodring said in a note, reiterating Apple as the brokerage's "top pick" heading into 2025. The recent surge in shares has pushed Apple's price-to-earnings ratio to a near three-year high of 33.5, compared to 31.3 for Microsoft and 31.7 for Nvidia, according to LSEG data. Warren Buffett's Berkshire Hathaway has sold shares of Apple - its top holding - this year, as the conglomerate broadly retreated from equities on concerns over stretched valuations. "I suspect the stock in three years will not look as expensive as it does today," said Eric Clark, portfolio manager of the Rational Dynamic Brands Fund, which holds Apple shares. Apple faces the risk of retaliatory tariffs if US President-elect Donald Trump delivers on his promise to slap tariffs of at least 10% on goods coming from China. "We believe it's likely Apple gets exclusions on products like iPhone, Mac and iPad, similar to the first round of China tariffs in 2018," Woodring said. Apple's shares tumbled last Wednesday amid a Wall Street selloff after the Federal Reserve forecast a slower pace of rate cuts next year but investors expect the broad trend of monetary easing to support stock markets next year. "Technology has been regarded by investors as a new form of a defensive sector because of their earnings growth," said Sam Stovall, chief investment strategist at CFRA Research. The Fed's action "could end up having a greater impact on some of the other cyclical areas such as consumer discretionary and financials and less so on technology." "Apple's approach to $4 trillion market cap is a testament to its enduring dominance in the tech sector. This milestone reinforces Apple's position as a market leader and innovator," said Adam Sarhan, chief executive officer of 50 Park Investments.

Apple Stock Hits All-Time High Thursday as Analyst Sees 'Golden Era of Growth' With AI

Apple shares have gained over one-third of their value since the start of the year, as the company's market capitalization nears $4 trillion. Apple (AAPL) shares closed at an all-time high Thursday after Wedbush analysts led by Dan Ives told clients that the iPhone maker could be headed for a "golden era of growth" in 2025, driven by demand for artificial intelligence (AI). The analysts raised their price target for Apple's stock by $25 to $325, implying about 25% upside from Thursday's record close at $259.02, and maintained an "outperform" rating, anticipating a multi-year iPhone upgrade cycle driven by AI that "is still being underestimated by the Street." That's a lot higher than the average analyst price target compiled by Visible Alpha at about $244, which would imply a decline from Thursday's level. Just over half or nine of the 15 analysts polled hold "buy" or equivalent ratings for the stock, with four "hold" and two "sell" ratings. Wedbush's target boost comes as the firm projects Apple could sell more than 240 million iPhones in fiscal year 2025, "as this AI-driven upgrade cycle takes hold and this will be the highest iPhone unit sales year in Apple's history." With Thursday's advance, shares of Apple have gained over one-third of their value since the start of the year, as the company's market capitalization nears $4 trillion. Wedbush expects Apple could soon reach that $4 trillion threshold, which would make it the first company in the world to do so. At present, there are only three companies with a market caps over $3 trillion, including Apple, Nvidia (NVDA), and Microsoft (MSFT).

Apple could hit a $4 trillion market cap by early 2025

Analysts at Wedbush, led by Dan Ives, said in a recent note that the Cupertino, California-based company "is set to have a strong holiday season ahead as iPhone 16 upgrades across its installed base are trending well into Christmas." In particular, Apple stands to sell upwards of 240 million iPhones in the 2025 fiscal year, fueled by AI-driven upgrades. The researchers said this could be "the highest iPhone unit sales year in Apple's history." Shares of Apple closed at $254.49 each Friday, up nearly 2%. So far this year, the company's stock has surged 37%, lifting its market capitalization to $3.85 trillion. That makes it the most valuable company in the world, followed by Nvidia (NVDA+1.96%) and Microsoft (MSFT-0.20%). Wedbush maintained its $300 price target, and said Apple is on track to become the first company to hit a $4 trillion market cap by early 2025. Although iPhone sales jumped 6% year-over-year in the September quarter to $46.22 billion, the company's annual revenue grew just 1% in the 2024 fiscal year. While the company has been banking on its new AI features, known as Apple Intelligence, to supercharge sales, some analysts have warned that more substantial innovations will be needed to drive interest. Wedbush said the "naysayers" are overlooking key opportunities within the company. With 2 billion iOS devices currently in use worldwide and 1.5 billion iPhones, Wedbush believes that there are approximately 300 million iPhones that haven't been upgraded within the past four years. That, combined with a strong services business and the massive potential for Apple users to tap into AI through their iOS devices, could give Apple the boost it's been gearing up for, the analysts said. "We believe the success of iPhone 16 with a strong holiday season ahead over the next week will be the launching pad for a renaissance of growth in Cupertino over the next 12 to 18 months," they wrote.

Apple Approaches $4 Trillion Valuation as Investors Bet on AI Momentum

Apple is closing in on a historic $4 trillion stock market valuation Apple is closing in on a historic $4 trillion (roughly Rs. 3,40,73,552 crore) stock market valuation, powered by investors cheering progress in the company's long-awaited AI enhancements to rejuvenate sluggish iPhone sales. The company has pulled ahead of Nvidia and Microsoft in the race to the monumental milestone, thanks to an about 16 percent jump in shares since early November that has added about $500 billion (roughly Rs. 42,59,194 crore) to its market capitalisation. The latest rally in Apple shares reflects "investor enthusiasm for artificial intelligence and an expectation that it will result in a supercycle of iPhone upgrades," said Tom Forte, an analyst at Maxim Group, who has a "hold" rating. Valued at about $3.85 trillion (roughly Rs. 3,27,95,962 crore) as of the last close, Apple dwarfs the combined value of Germany and Switzerland's main stock markets. The Silicon Valley firm, driven by the so-called iPhone supercycles, was the first US company to hit previous trillion-dollar milestones. In recent years, the company has attracted criticism for being slow to map out its artificial intelligence strategy, while Microsoft, Alphabet, Amazon, and Meta Platforms have pulled ahead to dominate the emerging technology. Shares of Nvidia, the biggest AI beneficiary, have surged more than 800 percent over the past two years, compared to the near doubling in shares of Apple during the same period. Apple earlier in December started integrating OpenAI's ChatGPT into its devices after unveiling plans in June to integrate generative AI technology across its app suite. The company expects overall revenue to increase "low- to mid-single digits" during its fiscal first quarter - a modest growth forecast for the holiday shopping season - sparking questions about the momentum for the iPhone 16 series. However, LSEG data showed analysts expect revenue from iPhones to rebound in 2025. "Although near-term iPhone demand is still muted ... it is a function of limited Apple Intelligence features and geographic availability, and as both broaden, it will help to drive an improvement in iPhone demand," Morgan Stanley analyst Erik Woodring said in a note, reiterating Apple as the brokerage's "top pick" heading into 2025. The recent surge in shares has pushed Apple's price-to-earnings ratio to a near three-year high of 33.5, compared to 31.3 for Microsoft and 31.7 for Nvidia, according to LSEG data. Warren Buffett's Berkshire Hathaway has sold shares of Apple - its top holding - this year, as the conglomerate broadly retreated from equities on concerns over stretched valuations. "I suspect the stock in three years will not look as expensive as it does today," said Eric Clark, portfolio manager of the Rational Dynamic Brands Fund, which holds Apple shares. Apple faces the risk of retaliatory tariffs if US President-elect Donald Trump delivers on his promise to slap tariffs of at least 10 percent on goods coming from China. "We believe it's likely Apple gets exclusions on products like iPhone, Mac and iPad, similar to the first round of China tariffs in 2018," Woodring said. Apple's shares tumbled last Wednesday amid a Wall Street selloff after the Federal Reserve forecast a slower pace of rate cuts next year but investors expect the broad trend of monetary easing to support stock markets next year. "Technology has been regarded by investors as a new form of a defensive sector because of their earnings growth," said Sam Stovall, chief investment strategist at CFRA Research. The Fed's action "could end up having a greater impact on some of the other cyclical areas such as consumer discretionary and financials and less so on technology." "Apple's approach to $4 trillion (roughly Rs. 3,40,73,552 crore) market cap is a testament to its enduring dominance in the tech sector. This milestone reinforces Apple's position as a market leader and innovator," said Adam Sarhan, chief executive officer of 50 Park Investments. © Thomson Reuters 2024

Apple's Near Term Success Will Be Driven By Strong Holiday Season, iPhone 16, Says Dan Ives -- Analyst Sees Stock Hitting $300, Cupertino Hitting $4 Trillion Marketcap - Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL)

Apple Inc. AAPL is on track to become the first company to reach a $4 trillion market capitalization by "early 2025," driven by strong iPhone sales and artificial intelligence innovations, according to Wedbush Securities analyst Dan Ives. What Happened: The tech giant's shares have surged nearly 40% since January, closing at $255 per share on Monday with a market cap of $3.86 trillion. This performance puts Apple ahead of rivals NVIDIA Corp. NVDA at $3.35 trillion and Microsoft Corp. MSFT at $3.22 trillion. Recent supply chain checks in Asia indicate robust iPhone 16 upgrade trends heading into the Christmas season. "We believe the success of iPhone 16 with a strong holiday season ahead over the next week will be the launchpad for a renaissance of growth in Cupertino over the next 12 to 18 months," Ives wrote in a weekend report, according to New York Post. Apple's recent iOS 18.2 update showcases its AI ambitions, introducing features like Visual Intelligence for text summarization and Image Playground for generating original images. These enhancements are exclusive to iPhone 15 Pro and iPhone 16 users. See Also: MicroStrategy Sinks After Nasdaq 100 Inclusion: Bitcoin Bet Under Fire? Why It Matters: The company's renewed focus on AI appears to be paying off. Apple reported iPhone sales of $46.22 billion in its fiscal fourth quarter, marking a 6% year-over-year increase and reversing two consecutive quarters of decline. Despite its strong position, Apple faces industry challenges. The company's revenue growth of 6.07% lags behind the technology hardware sector average of 21.95%, according to Benzinga data. However, Apple maintains superior profitability metrics, with its EBITDA of $32.5 billion significantly exceeding industry averages. The stock's current price-to-earnings ratio of 40.8 suggests potential undervaluation compared to industry peers, even as the company strengthens its AI capabilities through partnerships, including a recent collaboration with NVIDIA to enhance large language model performance. Price Action: Apple stock closed at $255.27 on Monday, up 0.31% for the day. In after-hours trading, the stock edged down 0.13%. Year to date, Apple shares have surged by 37.51%, according to data from Benzinga Pro. Apple has a consensus price target of $242.26 from 31 analysts, with a high of $300 by Wedbush and a low of $180 by DZ Bank. The most recent ratings from Morgan Stanley, Needham, and Wedbush set an average target of $277.67, implying an 8.91% upside for the stock. Read Next: Druckenmiller Bets Big On Semiconductor Stock Just Before It Spikes To $1 Trillion Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Apple Stock Gets Target Boost From Analyst Who Sees 'Golden Era of Growth' With AI

Apple shares have gained over one-third of their value since the start of the year, as the company's market capitalization nears $4 trillion. Wedbush analysts led by Dan Ives, long an Apple (AAPL) bull, told clients in a note Thursday that the iPhone maker could be headed for a "golden era of growth" in 2025, driven by demand for artificial intelligence (AI). The analysts raised their price target for Apple's stock by $25 to $325, implying about 26% upside from Thursday's intraday price of $258.25, and maintained an "outperform" rating, anticipating a multi-year iPhone upgrade cycle driven by AI that "is still being underestimated by the Street." That's a lot higher than the average analyst price target compiled by Visible Alpha at about $244, which would imply a decline from Thursday's intraday level. Just over half or nine of the 15 analysts polled hold "buy" or equivalent ratings for the stock, with four "hold" and two "sell" ratings. Wedbush's target boost comes as the firm projects Apple could sell more than 240 million iPhones in fiscal year 2025, "as this AI-driven upgrade cycle takes hold and this will be the highest iPhone unit sales year in Apple's history." Shares of Apple edged higher to an all-time high, before paring back gains in early trading Thursday. They've gained over one-third of their value since the start of the year, as the company's market capitalization nears $4 trillion. Wedbush expects Apple could soon reach that $4 trillion threshold, which would make it the first company in the world to do so. At present, there are only three companies with a market caps over $3 trillion, including Apple, Nvidia (NVDA), and Microsoft (MSFT).

Apple nears historic $4 trillion milestone ahead of Nvidia, Microsoft; now bigger than combined value of 2 countries' stock markets

Apple is nearing a whopping $4 trillion stock market valuation.Apple is closing in on a historic $4 trillion stock market valuation, powered by investors cheering progress in the company's long-awaited AI enhancements to rejuvenate sluggish iPhone sales, Reuters reported. The company has pulled ahead of Nvidia and Microsoft in the race to the monumental milestone, thanks to an about 16 per cent jump in shares since early November that has added about $500 billion to its market capitalization, as per a Reuters report. The latest rally in Apple shares reflects "investor enthusiasm for artificial intelligence and an expectation that it will result in a supercycle of iPhone upgrades," said Tom Forte, an analyst at Maxim Group, who has a "hold" rating. Valued at about $3.85 trillion as of the last close, Apple dwarfs the combined value of Germany and Switzerland's main stock markets. The Silicon Valley firm, driven by the so-called iPhone supercycles, was the first U.S. company to hit previous trillion-dollar milestones. In recent years, the company has attracted criticism for being slow to map out its artificial intelligence strategy, while Microsoft, Alphabet, Amazon and Meta Platforms have pulled ahead to dominate the emerging technology. Shares of Nvidia, the biggest AI beneficiary, have surged more than 800 per cent over the past two years, compared to the near doubling in shares of Apple during the same period. Apple earlier in December started integrating OpenAI's ChatGPT into its devices after unveiling plans in June to integrate generative AI technology across its app suite. The company expects overall revenue to increase "low- to mid-single digits" during its fiscal first quarter - a modest growth forecast for the holiday shopping season - sparking questions about the momentum for the iPhone 16 series. However, LSEG data showed analysts expect revenue from iPhones to rebound in 2025. The recent surge in shares has pushed Apple's price-to-earnings ratio to a near three-year high of 33.5, compared to 31.3 for Microsoft and 31.7 for Nvidia, according to LSEG data. Warren Buffett's Berkshire Hathaway has sold shares of Apple - its top holding - this year, as the conglomerate broadly retreated from equities on concerns over stretched valuations. Q1. What are other big two firms other than Apple? A1. The other big two firms other than Apple are Nvidia and Microsoft. Q2. Has Apple integrated OpenAI's ChatGPT? A2. Apple earlier in December started integrating OpenAI's ChatGPT into its devices.

Apple's AI Investments Bring It to Edge of $4 Trillion Valuation | PYMNTS.com

As Reuters reported Monday (Dec. 23), the company has pulled in front of Nvidia and Microsoft in the race for this historic valuation. Apple's shares have climbed 16% since earlier last month, adding around $500 billion to its market capitalization, the report said. The uptick reflects "investor enthusiasm for artificial intelligence and an expectation that it will result in a supercycle of iPhone upgrades," said Tom Forte, an analyst at Maxim Group, which has a "hold" rating. Apple was the first American company to reach past trillion-dollar landmarks, the report noted, driven by the strength of the iPhone "supercycles," a term for a wave of consumers deciding to upgrade their phones at once, leading to a boom in sales. According to the report, Apple expects overall revenue to grow by "low- to mid-single digits" during its fiscal first quarter -- a moderate forecast for the holiday shopping season -- leading to questions about the momentum for sales of the iPhone 16 model. Still, data from LSEG shows that analysts expect revenue from iPhones to recover next year. "Although near-term iPhone demand is still muted ... it is a function of limited Apple Intelligence features and geographic availability, and as both broaden, it will help to drive an improvement in iPhone demand," Morgan Stanley analyst Erik Woodring said in a note, calling Apple the brokerage's "top pick" heading into the new year. In other recent Apple news, artificial intelligence (AI) firm OpenAI last week launched more integrations of ChatGPT with desktop apps on Apple devices, saying these offerings will help users automate more of the work they perform on desktops. "As our models get increasingly powerful, ChatGPT will more and more become agentic," OpenAI Chief Product Officer Kevin Weil said in an OpenAI video summarizing news from Day 11 of the company's 12 Days of OpenAI event. "That means we will go beyond just questions and answers; ChatGPT will begin doing things for you ... ChatGPT will do more and more on your behalf." Meanwhile, Apple is looking for help in adding AI to its smartphones sold in China, with Reuters reporting that the company was in talks with two Chinese tech giants -- Tencent and TikTok parent ByteDance -- about integrating their artificial intelligence (AI) models into its products. Apple began integrating OpenAI's ChatGPT into its devices earlier this month, though the chatbot is not available in China. That's left the company seeking a local partner at a time when its market share in China is slipping.

From $255 to $300? Apple's stock surge explained

Apple's stock reached a record high of $255.65 on Monday following positive forecasts for its holiday sales from Wall Street analysts. Wedbush Securities' Daniel Ives reiterated an outperform rating on Apple, projecting a 12-month price target of $300. With a market cap close to $3.86 trillion, the company is expected to hit a $4 trillion valuation by early 2025. Demand for the iPhone 16 is reportedly higher than anticipated, suggesting a robust holiday season ahead. Analyst Ives indicated that Apple benefits from an AI-driven upgrade cycle linked to the iPhone 16, which launched in September. He noted, "We would characterize demand for iPhone 16 so far since its September launch as slightly ahead to generally in line with expectations globally." He emphasized that upgrades from the installed base of 1.5 billion iPhones will be significant during the Christmas period, with about 300 million iPhones in the upgrade window. As Apple gradually introduces artificial intelligence features, starting primarily in English-speaking markets, it prepares for a broader rollout. Reports suggest ongoing discussions with Chinese tech firms Tencent and ByteDance to leverage their AI models for the iPhone in China, a significant market for the company. Despite the upbeat outlook for the holiday season, analysts caution that Apple must diversify beyond its iPhone sales to sustain growth into 2025. The company's forward price-to-earnings multiple currently stands at 33.6, significantly above its five-year average of 26.5. Concerns linger about regulatory challenges and increasing competition, particularly in China, where iPhone demand has softened. Apple to release Face ID-powered home security devices Reports indicate that Apple's services business, which includes revenue from subscriptions, is emerging as a crucial component of its financial strategy. Analysts believe that if the company can enhance its services revenue, it may reduce dependence on iPhone sales. Jim Cramer of CNBC emphasized the potential benefits of a stronger services sector: "We figured that if the company is no longer going to be hostage to big [iPhone] launches, it makes sense that the price-to-earnings multiple should expand." Emerging markets such as India may play a vital role in balancing risks from regulatory pressures and tariffs proposed by the incoming political administration. Apple's efforts to diversify its supply chain could further insulate it from market fluctuations in traditional regions. Apple's move toward AI is described as a "multiyear AI journey," which Ives believes will redefine the company's future with innovations in chip architecture and software. While generative AI has garnered investor excitement, the extent of its impact remains uncertain. The company will need to demonstrate the ability to sustain growth without relying solely on flagship device launches. The market's response has been largely positive in anticipation of Apple's AI advancements and enhanced quarterly earnings reports. However, analysts express caution regarding stock price sustainability given its current valuation metrics. The potential for further rally remains uncertain, highlighting Apple's need to demonstrate growth beyond its hardware offerings. With increasing attention on Apple's inaugural AI offerings and further developments in its services business, stakeholders are keenly observing the company's strategies leading up to February's quarterly earnings report. The focus will be on whether Apple can leverage its AI capabilities while re-establishing momentum in important markets like China. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Wedbush lifts Apple price target by $25 banking on AI-driven growth By Investing.com

Investing.com -- Wedbush raised its price target on Apple Inc (NASDAQ:AAPL) to $325 from $300 banking on transformative AI-driven iPhone upgrade cycle poised to fuel growth into 2025. The brokerage maintained its "outperform" rating, projecting Apple's market cap to cross the $4 trillion mark. "We believe Apple is heading into a multi-year AI driven iPhone upgrade cycle that is still being underestimated by the Street," analyst wrote. The anticipated AI rollout, including features like Genmoji and ChatGPT integration in Siri, is expected to catalyze a multi-year growth phase. Wedbush estimates these advancements will drive consumer adoption and add billions in annual services revenue, bolstering Apple's ecosystem. With over 2 billion iOS devices and roughly 300 million iPhones ripe for upgrades, Apple is positioned for a potential supercycle. Wedbush forecasts iPhone unit sales could surpass 240 million in fiscal 2025, marking the highest in Apple's history. The firm sees Apple's AI-driven strategy as a pivotal shift, further solidifying its dominance across hardware, software, and services. "Rome wasn't built in a day and neither will Apple's AI strategy but the seeds of that strategy with Apple Intelligence are now forming and will transform the Apple consumer growth narrative over the coming years."

Apple stock hits all-time high of $255.81, marking robust growth By Investing.com

In a remarkable display of market resilience, Apple Inc. (NASDAQ:AAPL) stock has soared to an all-time high, reaching a price level of $255.81. With a massive market capitalization of $3.86 trillion, Apple continues to dominate as the world's most valuable company. This milestone underscores the tech giant's sustained momentum over the past year, which has seen the stock achieve an impressive 1-year return of 32.5%. InvestingPro analysis indicates the stock is currently trading in overbought territory, with multiple valuation metrics suggesting premium pricing. Investors and analysts alike attribute this surge to Apple's innovative product pipeline, strong financial performance, and its ability to navigate the complexities of a dynamic global market. The company's robust financials include $391 billion in revenue and an impressive 46.2% gross margin. The company's ability to consistently deliver value to shareholders is reflected in this latest peak, signaling a robust outlook for the future of the Cupertino-based behemoth. For deeper insights into Apple's valuation and 16 additional exclusive ProTips, visit InvestingPro, where you'll find comprehensive analysis in our detailed Pro Research Report. In other recent news, Apple Inc. has experienced significant developments. Wedbush Securities has maintained an optimistic stance, predicting robust holiday sales propelled by the iPhone 16 and anticipating the rollout of Apple Intelligence in China and other countries by April. This expansion is supported by an announced Chinese tech partner and the company's strong financial health. Furthermore, Apple Intelligence has introduced version 18.2, beginning a major series of software updates expected to incorporate AI features, including integration with ChatGPT. Meanwhile, Apple has terminated its project to develop an iPhone hardware subscription service, shifting its approach to payment services. The company's decision has led to the reassignment of the team responsible for the project. On the analyst front, JPMorgan (NYSE:JPM) reiterated its Overweight rating on Apple, focusing on the potential for Apple's shares to match the broader market's performance as the company integrates AI features across its product range. However, Jefferies reported soft iPhone 16 sales despite an increase in the trade-in values of older iPhone models, implying potential aggressive discount strategies in early 2025 to stimulate demand. Finally, Apple's negotiations with Chinese tech giants Tencent (HK:0700) and ByteDance have reportedly caused a dip in Baidu (NASDAQ:BIDU)'s stock. Apple's AI talks are seen as a strategic response to its declining market share in China, where domestic brands like Huawei are offering smartphones with advanced AI capabilities. These are the recent developments concerning Apple Inc.

Tech Bull Predicts 26% Upside For Apple Stock, Sees 'Golden Era Of Growth' For Cupertino Due To Multi-Year AI-Driven iPhone Upgrade Cycle - Apple (NASDAQ:AAPL)

Apple Inc. AAPL could ride the artificial intelligence boom, with its crown jewel iPhone expected to witness a "multi-year" upgrade cycle, according to an analyst. What Happened: Tech bull and Wedbush analyst Dan Ives believes that Apple's iPhone sales could witness a boost thanks to AI. "Raising price target on Apple to $325 as a golden era of growth for Cupertino is now on the horizon into 2025," said Ives in a post on X. Apple stock closed at $258.20 on Tuesday, up 1.2% for the day. Year-to-date, Apple shares have gained 39%, according to Benzinga Pro data. Ives' $325 price target implies a 26% upside. While Apple has been a little late to the AI game, having been beaten by its rivals Alphabet Inc.'s Google, and Samsung Electronics Co. Ltd., the Cupertino-based company unveiled the Apple Intelligence suite of AI features with the iPhone 16 series in September. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Ives expects Apple to benefit significantly from the consumer AI revolution, positioning it for substantial growth through 2025. "We believe Apple is heading into a multi-year AI driven iPhone upgrade cycle still being underestimated by the Street." See Also: Is This Nancy Pelosi's Stock Pick Set To Overtake Nvidia? Why It Matters: The recent price target hike aligns with Ives' previous predictions, which foresees Apple reaching a $4 trillion market capitalization by early 2025. This projection is driven by strong iPhone sales and AI innovations. Recent supply chain checks in Asia indicate robust iPhone 16 upgrade trends, particularly during the holiday season. Ives believes that the success of the iPhone 16 will serve as a launchpad for a renaissance of growth in Cupertino over the next 12 to 18 months. Furthermore, Ives predicts that Apple will ship a record 240 million iPhones in 2025, setting a new annual record as AI features in the iPhone 16 spark a "multi-year supercycle." This projection underscores the significance of AI integration in consumer devices, with Apple Inc. leading the charge. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Steve Ballmer's Winning Investment Strategy: Billionaire Says 'Keep It Simple' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Pexels AAPLApple Inc$257.85-0.14%Overview Rating:Good75%Technicals Analysis1000100Financials Analysis600100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Apple set to have a strong holiday season, Wedbush says By Investing.com

Investing.com -- Wedbush analysts expect Apple (NASDAQ:AAPL) to witness a strong holiday season, driven by solid demand for iPhone 16 upgrades across its user base leading into Christmas. The firm's optimism is based on recent checks of Asia's supply chain, which indicate positive trends. A key factor is Apple Intelligence, which has yet to launch in China and other regions. Analysts suggest April is the likely timeline for the AI rollout, with a Chinese tech partner expected to be announced soon to facilitate the launch in this critical market. The release of iOS 18.2 marked the beginning of major software updates for Apple Intelligence, introducing AI features like ChatGPT integration. "We believe Apple is on pace to reach the $4 trillion market cap threshold by early 2025 and be the first member of this exclusive club," analysts led by Daniel Ives said in a note. They highlight three factors they believe bearish investors and long-time Apple skeptics have overlooked. First, Apple's unmatched installed base includes over 2 billion iOS devices and 1.5 billion iPhones, with around 300 million iPhones nearing the window for upgrades. Second, the Services division, valued at $2 trillion, continues to grow and increase customer monetization. Third, consumer AI adoption is expected to flow through Apple's ecosystem, with over 20% of the global population likely to engage with AI on an Apple device in the coming years. "We believe the success of iPhone 16 with a strong holiday season ahead over the next week will be the launching pad for a renaissance of growth in Cupertino over the next 12 to 18 months that kicks off in this December quarter," analysts continued. Wedbush expects Apple's upcoming AI rollout to mark the beginning of a transformative cycle, driven by the development of AI-powered apps through Apple Intelligence. This multi-year initiative is expected to shape Apple's future, influencing chip architecture, hardware, and iPhone models. The release of iOS 18.2 is seen as a major step, introducing features like Genmoji, ChatGPT integration in Siri, Visual Intelligence, and an image playground. Analysts note that Apple's AI-driven upgrade cycle could spark a record-breaking iPhone supercycle, with around 300 million iPhones globally overdue for an upgrade. "In our view, Apple could sell north of 240 million iPhone units in FY25 as this AI-driven upgrade cycle takes hold and this will be the highest iPhone unit sales year in Apple's history," they wrote. In China alone, 100 million iPhones are seen as prime for upgrades. Wedbush also expects Apple to secure a Chinese AI partner in the coming months, with AI features likely to launch in the region by April.