Buy Apple stock because AI-powered – generative AI, to be specific – iPhones will drive shares a “once in a decade” event, BofA Securities analysts say.
Angela Palumbo for Barron’s:
The stock has climbed 16% from its 2024 closing low of $165 hit on April 19.
Many investors believe Apple will have news to share on the AI front at the Worldwide Developers Conference, or WWDC, which kicks off June 10. The company said on its website that there will be an “exciting reveal of the latest Apple software and technologies,” during the first day’s keynote. This is when the company is largely expected to announce an AI-powered iPhone, which could be a major boon to the stock.
“We view the upcoming AI enabled phones (IntelliPhones) to drive a multiyear upgrade cycle similar to the step function improvement driven by the introduction of smartphones,” BofA Securities analyst Wamsi Mohan wrote in a note Wednesday. “With an installed base of over 4 billion smartphones, we see the opportunity for the next upgrade cycle to be once in a decade type of event.”
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MacDailyNews Note: Mohan maintains a “Buy” recommendation on Apple shares with a $230 price target.
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This is pump and dump. Apple has no unique AI. Out of desperation they are paying open AI billions to add a service that is already free. Sure at first iPhone will have a few unique implementations that Apple will claim as the greatest thing ever, but soon every unique feature will be available on windows and other platforms. Apple went from be a world leader to being a woke smoke and mirrors side show with a big but shrinking market cap and leadership role. Consider that Microsoft owns 49% of open AI. Consider that open AI uses Nvidia hardware, what is Apple actually contributing to the AR Revolution, other than the fact that the pay huge sums of money, to put open AI on their phones. The real winners are open AI, Nvidia and sadly Microsoft. Maybe I’m wrong, time will tell.
If it’s a one in a decade event, why does the price target stay at only 230?
Just like 5G was the ‘super cycle’ that never happened, so is this AI on phone bs.
Apple did the absolute most wrong thing and paying the degenerates at OpenAI which is neither open, nor AI, for their pile of s*** chatbot, instead of using the LLMs that Meta released as open source for free.
I mean, just how stupid is cook? It’s astonishing that one person can be so consistently stupid.
No plan B with production in a hostile chinese crap country that can end apple tomorrow. Stayed too long knowing he doesnt know crap about products. Doubling down and going to Vietnam, another hostile communist s-hole. And now paying for a crap chatbot when facebook released an open source version just as good, but wait for it, for free and via open source.
Unreal.
Apple needs a master chef, but all it has is a lousy cook.
#BozoPurgeApple
Since yo unen a device to run AI I agree with them – and yes Nvidia and Microsoft and other will benefit but the device of choice to consume AI will be Apple. Unless you are buying a Microsoft phone..
AI: Integration is not an overnight event. This will be a mutt-year process with larger mature moves happening a few years down the road.
Silicon: Apple’s silicon is it’s key weapon, and building out it’s own server farms with it’s own silicon, it’s all key to Apple being able to write it’s own AI software and customize it’s chipset to marry to it.
Execution: Apple needs to execute flawlessly and bring easy power to the consumer. It seems like nothing, but what’s going on in the background is complex and heavy on compute. Apple doing this brings wins. It doesn’t need to be more powerful than other players, it needs to “just work” as if it’s nothing at all.
Marketing-wise, that’s a different story. What Apple may or may not spin at WWDC, we’ll see. These are developers, and the future roadmap isn’t likely to be revealed much, if at all. So plan on hype disappointment regarding AI at WWDC. Apple has a lot more than just AI coming in its fold. It’s more diverse than that.