While other tech stocks have been lifted by the artificial intelligence frenzy, Apple has languished. However, the company could have the last laugh according to Wall Street analysts.
Certainly there are other concerns, such as weakening Chinese iPhone sales and a new antitrust lawsuit. But given AI enthusiasm has been the biggest driver for tech stocks—it has allowed Nvidia to nearly double since the start of 2024 — worries Apple is losing its edge have been a big headwind for the shares.
Analysts argue it never pays to underestimate Apple.
“We have seen Apple’s back against the wall before and we view this period as just another chapter in the Apple growth story with AI now on the doorstep of coming to Cupertino,” writes Wedbush analyst Dan Ives in a new note Monday.
Melius Research’s Ben Reitzes… [writes] that in the near-future, the iPhone will be even more useful when consumers use AI-driven voice commands to get things done.
“Apple will likely offer their own AI apps, perhaps through an upgraded Siri and its own assistant that can be integrated into non-Apple Apps too,” Reitzes believes. That could drive an iPhone supercycle — such as the 2014-2015 boom — as soon as 2025, as software and security features on new models will be needed for users to get the most out of the new AI capabilities…
“Apple may still have the last laugh.”
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MacDailyNews Take: Reitzes has a $220 price target on Apple shares, which we’d welcome, but only as a waypoint to Ives’ $250 price target. Bring it on ASAP!
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
And then be sued by the DOJ for having their own app
They had Siri for how many years and it’s crap. I’m not holding my breath they get gen AI right considering how stupid Siri is.
There have been a few improvements I have noticed lately. For a while now, Siri knows how to spell my dog’s name (Ayleen) correctly but since Apple introduced Siri a lot more would have been possible. – I really hope that Apple will surprise everybody in June.
I’m sure they will. Whether it will be a nice surprise is a different story.