Home News Apple Stock Jumps After Bank of America Update Citing Likely AI-Related Boost for iPhones

Apple Stock Jumps After Bank of America Update Citing Likely AI-Related Boost for iPhones

by SuperiorInvest

Key takeaways

  • Analysts at Bank of America upgraded Apple stock, saying the tech giant could see significant long-term gains as artificial intelligence (AI) technology is integrated into the iPhone.
  • Analysts reported that investor concerns about short-term challenges, such as the Apple Watch ban in the United States, weak sales in China and legal battles, do not consider the long-term benefit of the iPhone business amid the rise of AI.
  • Apple shares rose more than 3% during intraday trading on Thursday, recovering from losses from earlier in the week.

Apple (AAPL) shares rose in intraday trading Thursday, recovering from losses earlier in the week, after Bank of America analysts raised their price target for the stock and said the tech giant could benefit from the evolution of 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] “We need the latest hardware to enable generative AI features to be introduced in 2024/2025.”

Bank of America said it “expects[s] “Apple will introduce AI-powered features in iOS18 with monetization through better iPhone hardware and AI-enabled third-party apps.”

The firm added that the Vision Pro, scheduled to launch on February 2, “could outperform the iPad over time as spatial computing takes hold and offers differentiated use cases that drive services upward.”

Analysts at Bank of America said investor concerns around issues such as iPhone sales in China, the Apple Watch ban in the US and ongoing legal actions with various courts and other companies, among others challenges, may be overshadowing the prospect of a long-term future. AI-related growth.

The analysts said that “China’s weakness is largely offset by the strength of other countries,” while “the risk related to legal issues is manageable.” They added that Bank of America checks “suggest higher iPhone production in December and potentially lower in March, but no material changes added to orders.”

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