Analyst predicts Apple and Microsoft to be first $4 trillion companies by 2025

From Nasdaq: 2025-01-04 03:30:00

Equity analyst Dan Ives accurately predicted the Nasdaq hitting 20,000 and Palantir becoming the top stock in the S&P 500. Now, he believes Apple and Microsoft will be the first $4 trillion companies by 2025. Ives raised Apple’s target to $325 per share, implying a 34% increase, and set Microsoft’s target at $550 per share, a 31% upside.

Apple, ranked as the most valuable brand globally in 2024, introduced Apple Intelligence to drive an upgrade cycle and potentially reach a market value of $5 trillion within 18 months. Despite solid financial results, Apple’s high P/E ratio and lack of a clear AI strategy for its services business raise some concerns.

Microsoft, the largest software company by revenue, also reported strong financial results, particularly in cloud services and software. While the company faces short-term headwinds from its partnership with OpenAI, it expects to benefit in the long run and has seen success in monetizing AI through Azure OpenAI.

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