According to Wedbush, Apple shares have 26% upside potential as its AI strategy ushers in a “new era” of growth

• According to Wedbush analyst Dan Ives, Apple shares will rise in 2025 thanks to its AI strategy.

• Ives raised Apple’s price target to $325, the highest on Wall Street.

• Apple’s AI features, such as ChatGPT integration and a revamped Siri, are expected to drive consumer demand.

According to Wedbush analyst Dan Ives, Apple stock is poised to continue its record run in 2025 as it benefits from the continued rollout of its AI strategy.

The analyst raised his Apple price target from $300 to a high of $325, representing a potential 26% upside from current levels.

“A golden era of growth for Cupertino is now emerging through 2025,” Ives said of Apple in a note this week.

What excites Ives is Apple’s AI strategy, which includes rolling out “Apple Intelligence” across its product lineup through staggered software updates.

“Rome wasn’t built in a day, and Apple’s AI strategy won’t be, but the foundation for that strategy with Apple Intelligence is forming now and will change the narrative about Apple’s consumer growth in the coming years,” Ives said .

As Apple’s lineup becomes more AI-enabled, that should drive consumer demand, according to Ives, who estimates there are 300 million iPhones waiting for an upgrade.

Apple’s new iPhone iOS 18.2 version was released earlier this month and included new AI features including ChatGPT integration, the ability to create your own emojis, and an AI-based image generator.

Apple’s next major software update is a revamp of the Siri assistant that aims to make it more conversational. The launch is expected to take place in early 2025.

“We expect Apple’s AI rollout over the next few months to usher in a new era for Cupertino, as hundreds of AI-driven apps will ultimately be built by developers based on the building blocks of Apple Intelligence,” Ives said.

According to Ives, this “new era” will last for many years as Apple introduces next-generation chip architecture, new hardware releases and future iPhone models built on an AI basis.

Ives’ supply chain audits suggest consumers are becoming more comfortable with Apple’s AI strategy, suggesting the current iPhone cycle could be “a historic one.”

Read the original article on Business Insider