Apple Stock Soars to All-Time High on AI Expectations and Morgan Stanley Upgrade

Apple stock overtakes Microsoft on increased AI expectations

Apple's stock has risen sharply to take it ahead of Microsoft again, following investment analysts predictions of an iPhone upgrade super cycle because of Apple Intelligence. Even in pre-market trading, Apple was up 56 cents to $234.96, and when the market opened, it was on $235.20 per share. That puts Apple's market cap at $3.6 trillion, where Microsoft opened down at $3.4 trillion, cementing Apple's lead, which it took when the market closed Monday. Apple's rising share price follows the latest reports from analysts including Morgan Stanley. The firm has generally been bullish on Apple while other analysts have shied away from it, but in its most recent reports, it named the company as its top pick for investors. After months of small trims, Morgan Stanley has now significantly raised its target price. It's gone from $216 to $273, again specifically because of Apple Intelligence. Back in June 2024, JP Morgan also raised its target price for the same reasons. In that case it was only a $20 raise to $245, though. In July 2024, Wedbush went so far as to say that there would be a "monumental" upgrade cycle for the iPhone 16 range, once more because of AI. It also said that it expected Apple's share price to rise by between $30 and $40. Wedbush has not raised its Apple target price, even after concluding that Apple Intelligence makes the company a good investment. However, its target price was already $275.

Apple at all-time high after Morgan Stanley calls stock 'top pick' for AI efforts

The iPad maker last month unveiled Apple Intelligence, luring customers to upgrade their devices to be able to use the new technology Apple's shares rose 2.5% to a record high on Monday after Morgan Stanley raised its price target on the iPhone maker's shares and designated the stock as a "top pick," citing the company's AI efforts as a boost to device 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's shares, 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. 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, adding that the company could sell nearly 500 million iPhones over the next two years. 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, and has outperformed the S&P 500 index this year, according to LSEG data. Industry analysts expect Samsung and Apple to lead the charge in global smartphone market recovery this year given the buzz around GenAI-enabled smartphones. Apple sold 45.2 million smartphones globally 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. (Reporting by Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)

Apple gains after Morgan Stanley calls stock 'top pick' for AI efforts

Apple's shares rose 2% after Morgan Stanley raised its price target, touting Apple Intelligence as a key driver for increased device sales. With a market value of $3.6 trillion, Apple is poised for significant growth in iPhone shipments. Industry experts predict a recovery in the global smartphone market led by Apple and Samsung.Apple's shares rose about 2% on Monday after Morgan Stanley raised its price target on the iPhone maker's shares and designated the stock as a "top pick," citing the company's AI efforts as a boost to device 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's shares, which have jumped nearly 20% this year, rose to $235.37 before the bell, giving the company a market value of about $3.6 trillion, the highest in the world. "Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments," Morgan Stanley analysts said. 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, adding that the company could sell nearly 500 million iPhones over the next two years. 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, and has outperformed the S&P 500 index this year, according to LSEG data. Industry analysts expect Samsung and Apple to lead the charge in global smartphone market recovery this year given the buzz around GenAI-enabled smartphones. Apple sold 45.2 million smartphones globally 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 gains after Morgan Stanley calls stock 'top pick' for AI efforts

July 15 (Reuters) - Apple's shares rose about 2% on Monday after Morgan Stanley raised its price target on the iPhone maker's shares and designated the stock as a "top pick," citing the company's AI efforts as a boost to device 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's shares, which have jumped nearly 20% this year, rose to $235.37 before the bell, giving the company a market value of about $3.6 trillion, the highest in the world. "Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments," Morgan Stanley analysts said. 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, adding that the company could sell nearly 500 million iPhones over the next two years. 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, and has outperformed the S&P 500 index this year, according to LSEG data. Industry analysts expect Samsung and Apple to lead the charge in global smartphone market recovery this year given the buzz around GenAI-enabled smartphones. Apple sold 45.2 million smartphones globally 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. (Reporting by Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)

Apple Shares Hit Record High on AI Hype, Morgan Stanley Upgrade

Apple's (GS) shares soared to an all-time high on Monday, rising 2.5% to $236.30, after Morgan Stanley (MS) raised its price target and designated the stock as a "top pick" due to the company's advancements in artificial intelligence. The iPhone maker's latest AI initiative, Apple Intelligence, unveiled last month, is expected to drive a significant uptick in device sales, allowing the company to catch up with competitors like Google's Alphabet and Microsoft-backed OpenAI. Apple's market value reached a staggering $3.62 trillion, the highest in the world. Morgan Stanley analysts highlighted that Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments. They noted that the new technology is currently compatible with only 8% of existing iPhone and iPad devices, with Apple having 1.3 billion smartphones in use. The analysts projected that Apple could sell nearly 500 million iPhones over the next two years, raising their price target on the company's shares from $216 to $273. The stock has already jumped nearly 20% this year, outperforming the S&P 500 index. Market Overview: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Apple gains after Morgan Stanley calls stock 'top pick' for AI efforts

July 15 (Reuters) - Apple's (AAPL.O)New Tab, opens new tab shares rose about 2% on Monday after Morgan Stanley raised its price target on the iPhone maker's shares and designated the stock as a "top pick," citing the company's AI efforts as a boost to device sales. In what was seen as a move to catch up with Alphabet's (GOOGL.O)New Tab, opens new tab Google and Microsoft-backed (MSFT.O)New Tab, opens new tab OpenAI, the iPad maker last month unveiled Apple Intelligence, luring customers to upgrade their devices to be able to use the new technology. Apple's shares, which have jumped nearly 20% this year, rose to $235.37 before the bell, giving the company a market value of about $3.6 trillion, the highest in the world. "Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments," Morgan Stanley analysts said. 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, adding that the company could sell nearly 500 million iPhones over the next two years. 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, and has outperformed the S&P 500 index (.SPX)New Tab, opens new tab this year, according to LSEG data. Industry analysts expect Samsung (005930.KS)New Tab, opens new tab and Apple to lead the charge in global smartphone market recovery this year given the buzz around GenAI-enabled smartphones. Apple sold 45.2 million smartphones globally 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. Reporting by Akash Sriram in Bengaluru; Editing by Shounak Dasgupta

Apple hits record high again after being Named top pick at Morgan Stanley

(Bloomberg) -- Apple Inc. surged to another record high on Monday after the tech giant was named a top pick at Morgan Stanley, with the broker seeing the launch of the company's artificial intelligence platform triggering a record rush among users to upgrade their smartphones, tablets and computers. Analyst Erik Woodring boosted his price target on the tech giant's shares to US$273, the third-highest among analysts tracked by Bloomberg, saying Apple Intelligence has potential to drive a record number of device upgrades. The feature is a "clear catalyst" for a multi-year upgrade cycle, he wrote in a note Monday. The highest price target for Apple shares comes from Loop Capital, which on Monday raised the stock to buy from hold and boosted its objective to $300 from $170. Apple is in a position to become the generative AI "base camp" of choice for consumers, "just as it has done for digital content (iPod) and social media (iPhone)," analyst Ananda Baruah wrote in a note. Morgan Stanley's Woodring forecasts Apple will ship almost 500 million iPhones over the next two years -- higher than the record cycle in 2021-2022. Apple unveiled its suite of AI services in June at its Worldwide Developers Conference, with Senior Vice President Craig Federighi describing it as "AI for the rest of us."Shares hit their first record high of the year following the reveal. Shares in Apple rose as much as 2.9% to $237.23. Through Friday's close, the shares had risen 17% since the company unveiled Apple Intelligence, outpacing the Nasdaq 100 Index's 7% gain over the same period. "We believe that there is record level of pent-up demand entering the iPhone 16 cycle later this year," wrote Woodring, who has an overweight rating on the stock. "Coming out of WWDC -- where Apple debuted Apple Intelligence -- we have even greater conviction that FY25 could be the start of a multi-year device refresh cycle." Apple Intelligence will "deliver much improved, and unique-to-the-Apple-ecosystem utility value" for more than 1.3 billion users, Woodring said, adding that it will force device upgrades and accelerate product replacement cycles -- a key catalyst that has historically driven Apple stock outperformance. Only 15% Apple's total installed user base will be able to support Apple Intelligence because the technology will be limited to devices using A17 Pro and M-Series chips, Woodring said. While a majority of Mac users will be able to use it, just 8% of current iPhone and iPad users will be able to power the AI platform. Under the analyst's estimates, more than 1.2 billion iPhones, iPads and Macs will need to be upgraded. Initial adoption of Apple Intelligence will be limited to US English iPhone users when it launches this fall. Still, Woodring sees factors such as the broadening of non-English functionality adding even more value to users over the next 12 to 24 months. In Woodring's view, it sets Apple up for a return to year-over-year unit growth in FY2025, followed by a potential for a major cycle in FY2026. Apple's annual sales in India hit a record of nearly $8 billion,Bloomberg News reported Monday, underscoring a rapidly growing market where the iPhone maker now assembles more of its devices and operates two flagship stores.

Apple gains after Morgan Stanley calls stock 'top pick' for AI efforts - ET Telecom

Apple's shares rose about 2% on Monday after Morgan Stanley raised its price target on the iPhone maker's shares and designated the stock as a "top pick," citing the company's AI efforts as a boost to device 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's shares, which have jumped nearly 20% this year, rose to $235.37 before the bell, giving the company a market value of about $3.6 trillion, the highest in the world. "Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments," Morgan Stanley analysts said. 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, adding that the company could sell nearly 500 million iPhones over the next two years. 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, and has outperformed the S&P 500 index this year, according to LSEG data. Industry analysts expect Samsung and Apple to lead the charge in global smartphone market recovery this year given the buzz around GenAI-enabled smartphones. Apple sold 45.2 million smartphones globally 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.

Morgan Stanley bets on AI features in Apple devices to drive sales - Times of India

Morgan Stanley has named Apple a top pick, citing the tech giant's artificial intelligence (AI) efforts as a key driver for future device sales. The investment bank raised its price target on Apple shares from $216 to $273, making it one of the highest targets among analysts. Analyst Erik Woodring predicts that the introduction of Apple Intelligence, the company's AI platform, will trigger a record-breaking upgrade cycle for iPhones, iPads, and computers.Morgan Stanley forecasts Apple will ship nearly 500 million iPhones over the next two years, surpassing the previous record set in 2021-2022. The limited backward compatibility of Apple Intelligence is expected to be a significant factor in driving upgrades. Only 15% of Apple's total installed user base, primarily devices with A17 Pro and M-Series chips, will be able to support the new AI features. This restriction is anticipated to prompt users to upgrade their devices to access the latest technology. Morgan Stanley projects that in fiscal years 2025 and 2026, 66-69% of iPhones shipped will be new models capable of running Apple Intelligence. This shift is expected to lead to a 4-5% annual growth in iPhone average selling prices. The iPad market is also poised for a potential mini upgrade cycle, as currently only 24% of iPads can run Apple Intelligence. Analysts predict that the introduction of AI features could reduce iPad replacement cycles to 3.8 years, matching pre-COVID averages. Apple's market position in China, which has faced challenges in recent years, is expected to improve with the rollout of AI features. Morgan Stanley believes that Apple Intelligence could help the company regain lost market share in China's high-end smartphone segment. The stock market responded positively to Morgan Stanley's outlook, with Apple shares rising about 2% following the announcement. As of July 15, 2024, Apple's market capitalization stood at approximately $3.6 trillion, maintaining its position as the world's most valuable company. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Apple Stock Hits Record High On AI iPhone Anticipation -- As Analysts Predict $5 Trillion Valuation

Apple tallied yet another all-time high share price Monday after a pair of investment firms meaningfully hiked their price targets for the stock, the latest positive push for Apple stock ahead of the hotly anticipated release of generative artificial intelligence iPhones. Get Forbes Breaking News Text Alerts: We're launching text message alerts so you'll always know the biggest stories shaping the day's headlines. Text "Alerts" to (201) 335-0739 or sign up here. "Never in Apple's 40-year history has the iPhone installed base been so large (1.3b+ devices), replacement cycles been so extended (at 4.8 years), and a new technology been limited to such a small cohort of users (8% of the iPhone/iPad installed base) all at the same time," declared Woodring. After years of speculation, Apple officially announced its "Apple Intelligence" generative AI plans on June 10, including the integration of the hit ChatGPT chatbot into the iOS operating system scheduled for a September release. Apple stock is up more than 20% since that announcement, outgaining the S&P 500's 5% gain as investors bought into the company's AI vision (the stock had lagged other big tech names like Microsoft due to a perceived deficit in the AI arms race). Apple, which had been the world's largest company for most of the last decade, overtook Microsoft as the largest company in the world last month, having lost the title from January to June. Don't expect evidence of an iPhone renaissance in Apple's earnings report due Aug. 1: Analyst forecasts call for the weakest quarterly iPhone sales since 2020's quarter ending in September, according to FactSet, at $38.7 billion. Consensus forecasts call for a record $72.4 billion of iPhone revenues this holiday quarter, though.

Morgan Stanley Analysts Named Apple a Top Pick Stock and Doubled Their iPhone Expectations -- Here's Why

It's estimated that 270 million iPhone users have not bought a new model in the past four years. Apple entered the AI game last month with Apple Intelligence, a suite of new features designed to bring AI straight to iPhone, iPad, and Mac screens. Apple's AI has a catch though: it only works on the newest iPhones and it could be the reason why millions of iPhone users with older models seriously think about upgrading, say Morgan Stanley analysts. Morgan Stanley analysts named Apple a top-pick stock on Monday, after which Apple shares jumped to an all-time high, per Bloomberg. Apple Intelligence is a "clear catalyst" for iPhone upgrades and will enable Apple to sell nearly half a billion iPhones in the next two years, analyst Eric Woodring stated. Apple Intelligence is expected to come out this fall for the iPhone 15 Pro and 15 Pro Max -- older iPhones will not have access to Apple's AI. The update offers AI-generated emojis, a smarter Siri, and direct access to ChatGPT, though some anticipated Siri AI upgrades may arrive next year. Related: Apple Is Expanding What The iPhone Can Do. Here's What's Changing Right Away. "We believe that there is record level of pent-up demand entering the iPhone 16 cycle later this year," Woodring noted, adding that Apple Intelligence delivers "unique-to-the-Apple-ecosystem" value. Morgan Stanley previously forecasted that Apple would sell around 230 million iPhones in the same time frame, making the new prediction more than double the previous one. Apple is also uniquely positioned to be the AI "base camp" for its customers, "just as it has done for digital content (iPod) and social media (iPhone)," wrote Morgan Stanley analyst Ananda Baruah. Other analysts at different firms have made similar predictions. Wedbush Securities analyst Dan Ives told Reuters in June that more than 15% of existing iPhone users could buy the new iPhone Apple is expected to release this fall. Related: Apple Labels These 3 Iconic Products 'Vintage,' and Soon-to-Be 'Obsolete' Ives estimated that 270 million iPhone users have not bought a new model in the past four years.

Apple again the most valuable company in the world, worth $3.62T

Apple yesterday returned to being the most valuable company in the world, after a new record high saw the company valued at $3.62T. AAPL stock jumped 2.5% in just one day after Morgan Stanley pointed to the company's AI work, and named it a 'top pick' ... The title of the world's most valuable company by market capitalization changes from time to time, depending on the relative stock prices of the various contenders. Winners at any given point have included Apple, Aramco, Exxon Mobil, and Microsoft. Microsoft took the lead back in January, riding high on its AI credentials - and it's now this same reasoning Morgan Stanley has given for its AAPL pick. Reuters reports. Apple's shares rose 2.5% to a record high on Monday after Morgan Stanley raised its price target on the iPhone maker's shares and designated the stock as a "top pick," citing the company's AI efforts as a boost to device sales [...] Apple's shares, 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. Key here is that the iPhone 15 Pro and Pro Max are the only two existing iPhone models which will support the full range of Apple Intelligence features, which is likely to drive a supercycle of sales for this year's iPhone 16 line-up. Additionally, the requirement for an Apple Silicon chip for AI on Macs will likely spur many Intel holdouts to upgrade to an M-powered Mac.

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

The Loop analysts compared the potential of generative AI with previous stock catalysts such as digital media on original iPods and social media on the first generations of iPhones. Apple (AAPL) stock touched a record high in intraday trading Monday as the tech giant received price-target increases from analysts who cited the company's strong position for the future of artificial intelligence (AI) use on smartphones. Analysts from Loop Capital and Morgan Stanley each raised their price targets Monday, with Loop Capital analysts also upgrading Apple stock to "buy" from "hold," while bumping their price target to $300, from $170 previously. Apple shares were up 1.8% at $235.75 in recent trading, after rising to an all-time high of $237.23 early in the session. Loop analysts drew a comparison Monday to how the first iPods went on to make Apple the dominant force in music and digital content and how the first iPhones coincided with the rise of social media. Similar to those advances, the analysts wrote that Apple's new AI-powered iPhones and iPads could make Apple the generative AI "base camp" for users as the devices' generative AI services grow more powerful. The rise of digital content and social media were "material stock catalysts" that helped Apple's stock rise substantially over time, and Loop analysts said generative AI could be a similar driving force. Morgan Stanley analysts also wrote Monday that Apple's generative AI efforts will be a "clear catalyst" to sales for both iPhones and iPads, projecting that Apple could sell up to 500 million iPhones over the next two years, according to Reuters. Morgan Stanley analysts lifted their price target for Apple to $273 from $216, Reuters reported. The iPhone maker has made a number of moves as it increases its focus on the AI space for future iPhone and iPad releases, from acquisitions to deals with ChatGPT maker OpenAI. AI was also a key element of last month's Worldwide Developers Conference (WWDC), as the company debuted its own "Apple Intelligence." Optimism over the WWDC announcements also drove Apple's stock to record highs in June.

Apple Shares Rise After Morgan Stanley Endorsed Apple Stock As "top Pick"

(RTTNews) - On Monday, Apple's stock (AAPL) experienced an increase following positive feedback from Wall Street analysts. Morgan Stanley's analyst, Erik Woodring, reiterated his positive outlook on Apple's stock and raised his price target to $273 from $216, endorsing Apple as a "top pick." Woodring mentioned in a client note, that Apple's AI technology, known as Apple Intelligence, is expected to be a significant driver in a multiyear product upgrade cycle, potentially boosting sales of iPhones and iPads over the next two years. As per Woodring's analysis, Apple is projected to ship nearly 500 million iPhones over the next two years, indicating a 6% increase from the previous record cycle. This could also lead to a 5% annual growth in iPhone ASP (average selling price). Woodring further predicts iPhone shipments of 235 million units in fiscal 2025 and 262 million in fiscal 2026, with the iPhone 16 series launch marking the commencement of the upgrade cycle in mid-September. Additionally, Loop Capital analyst Ananda Baruah upgraded Apple's stock to buy from hold, setting a new price target of $300, up from $170. Baruah emphasized the opportunity for Apple to establish itself as the preferred choice for consumers in the realm of AI, particularly in driving iPhone upgrades. The prospect of AI-enhancing iPhone upgrades positions Apple as a frontrunner in generative artificial intelligence applications for consumers. It's worth noting that the adoption of Apple Intelligence will necessitate users to upgrade to an iPhone 15 Pro or a newer model, potentially contributing to a positive mix shift and ASP growth for Apple. The estimates suggest that 66% to 69% of shipped iPhones in the financial years 2025 and 2026 will be new models, hinting at a potential 4% to 5% annual iPhone ASP growth. Moreover, only 24% of iPad models currently support Apple Intelligence, pointing towards a potential "mini upgrade cycle" for the tablets and potentially shortening the iPad replacement cycles to 3.8 years, according to AppleInsider. AAPL is trading on the Nasdaq at $234.38, up %1.70 or $3.80 per share. It has traded between $164.08 and $237.23 in the past 52-week period. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.