Apple Set to Benefit from AI Renaissance with iPhone Sales Surge

Analyst Predicts Major Growth as Company Prepares for Multi-Year iPhone Upgrade Cycle

What Happened: Dan Ives, a prominent analyst at Wedbush, has expressed optimism about Apple Inc.’s AAPL iPhone sales. Ives suggests that the integration of artificial intelligence (AI) could significantly boost sales.

In a recent update, Ives raised his price target for Apple to $325, indicating he believes the company is entering a golden era of growth leading into 2025. “This is a pivotal moment for Cupertino,” he noted.

As of Tuesday, Apple stock closed at $258.20, marking a 1.2% increase for the day. Year-to-date, shares have risen by 39%, according to data from Benzinga Pro. Ives’ new target offers a 26% potential upside from the current stock price.

Although Apple has entered the AI competition later than its rivals, including Alphabet Inc.’s Google and Samsung Electronics Co. Ltd., the company launched the Apple Intelligence suite of AI features with the release of the iPhone 16 series in September.

Ives is confident that Apple stands to gain significantly from the consumer AI revolution, positioning the company for remarkable growth through 2025.

“We believe Apple is launching into a multi-year AI-driven iPhone upgrade cycle that is still underestimated by analysts,” he remarked.

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Why It Matters: The increase in price target aligns with Ives’ earlier forecasts, which predict that Apple may reach a $4 trillion market capitalization by early 2025. Strong iPhone demand and innovative AI features are key factors behind this outlook.

Recent supply chain checks indicate promising trends for iPhone 16 upgrades, particularly during the holiday season. Ives believes the success of the iPhone 16 could pave the way for a period of significant growth for Apple in the next 12 to 18 months.

Additionally, he anticipates that Apple will ship a record 240 million iPhones in 2025, setting a new annual benchmark. This growth is expected to be fueled by AI features within the iPhone 16, catalyzing a “multi-year supercycle.” The integration of AI in consumer devices underscores Apple’s role as a leader in this technology transformation.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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