Key takeaways
- Analysts at Bank of America have upgraded Apple shares by saying the tech giant could achieve significant long-term gains from integrating artificial intelligence (AI) technology into the iPhone.
- Analysts have reported that investor concerns about short-term challenges such as the U.S. ban on the Apple Watch, weak sales in China and legal battles do not take into account the long-term benefits of the Apple Watch. iPhone activity amid the AI boom.
- Apple shares rose more than 3% in intraday trading Thursday, rebounding from losses earlier in the week.
Apple (AAPL) shares jumped in intraday trading Thursday, rebounding from losses earlier in the week, after Bank of America analysts raised their price target on the stock and said the tech giant could gain to evolve. artificial intelligence (AI) technology.
Bank of America upgraded Apple to buy from neutral, increasing its price target to $225 from $208.
Apple shares rose 3.4% to $188.92 around 2:30 p.m. ET on Thursday.
Bank of America analysts expect a “stronger multi-year iPhone upgrade cycle, driven by (the) need for the latest hardware to enable Generative AI features that will be introduced in 2024/2025.
Bank of America said it “expects Apple to introduce AI-based features in iOS18 with monetization through better iPhone hardware and AI-enabled third-party apps.”
The company added that the VisionProscheduled to launch on February 2, “could surpass the iPad revolutions over time as spatial computing takes hold, providing differentiated use cases driving services.”
Bank of America analysts said investor concerns over issues such as iPhone sales in ChinaA Apple Watch ban in the United States, and ongoing legal proceedings with various courts And other companiesamong other challenges, could overshadow long-term growth prospects related to AI.
Analysts said that “China’s weakness is largely offset by the strength of other countries”, while “the risk from legal issues is manageable”. They added that Bank of America “monitoring suggests higher iPhone production in December and potentially lower in March, but no material change in overall orders.”
