Apple is predicted to become the world's first $4 trillion company with new AI product.

From NASDAQ.: 2024-06-30 06:30:00

Microsoft, Apple, and Nvidia are in a race to become the world’s largest company by market cap. Currently, Microsoft holds the lead over Apple by about $100 billion. Apple’s market share increases by $100 billion in a day equal to a 3.1% rise in stock price. Apple may reach the $4 trillion threshold first.

Apple introduces Apple Intelligence, a generative AI product. It will only work on iPhone 15 models and newer, potentially igniting a new upgrade cycle for iPhones, iPads, and Mac computers. If the technology becomes a must-have, Apple’s stock could reach $4 trillion in market cap.

Apple’s sales could receive a 50% boost with a 10% increase in user base upgrading to iPhone 15 models. This growth could lead to a 31% increase in overall revenue, potentially pushing Apple’s market cap to $4.18 trillion. Apple Intelligence release in the fall could drive significant revenue in the holiday quarter.

Microsoft and Nvidia may not rise as much as Apple by the release of Apple Intelligence. Microsoft’s growth is steady, while Nvidia’s future remains unpredictable. Apple is positioned to become the first $4 trillion company with a successful launch of Apple Intelligence, potentially driving its stock price higher.

Investors should consider the potential growth of Apple stock with the introduction of Apple Intelligence. While Apple wasn’t among the 10 best stocks identified by the Motley Fool Stock Advisor, the launch of Apple Intelligence could lead to significant returns for investors. Past performance of other recommended stocks suggests significant growth opportunities.



Read more at NASDAQ.: Prediction: Apple Will Be the World’s First $4 Trillion Company