From NASDAQ.: 2024-06-24 16:31:25

Throughout the 20th century, AI was a distant dream, but now it’s ubiquitous – from social media to rare disease diagnosis. Companies like Nvidia and Microsoft are leaders, with Apple’s grand entrance stealing the show at WWDC on June 10. Analysts like Steve Eisman recommend holding onto Apple stock due to its pivotal role in the AI world.

After unveiling “Apple Intelligence” at WWDC, Apple’s shares surged 6.3% to an all-time high of $220.20 on June 12. With a market cap over $3.2 trillion, Apple’s stock has gained 21.9% in the last 3 months, outperforming the S&P 500. The tech giant also raised its dividend and announced a hefty $110 billion buyback.

Apple exceeded Q2 earnings expectations, with total sales hitting $90.7 billion and services revenue growing by 14.1% to $23.9 billion. Fiscal Q3 is expected to see low single-digit revenue growth, especially in the services business. Analysts foresee earnings per share of $7.32 in fiscal 2025, continuing a trend of steady growth for Apple.

Apple’s recent AI advancements at WWDC, including a personal intelligence system and innovative AI features across flagship products, have garnered immense attention. Partnerships with companies like OpenAI have enhanced user experience with generative AI technologies, igniting excitement for potential iPhone upgrades and long-term growth for Apple.

Analysts have high hopes for Apple in the AI landscape. Dan Ives of Wedbush Securities believes AI adds up to $40 per share to Apple’s story, while Melius Research raised its price target to $260. CFRA and Bernstein also increased their price targets to $240, highlighting Apple’s potential to revolutionize AI for over a billion iPhone users and generate high-margin app and advertising revenue.



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