Investment firm Wedbush is optimistic about Apple's AI initiatives, predicting a significant boost in demand for the upcoming iPhone 16. This bullish outlook has led Wedbush to raise its Apple stock price target from $250 to $275, citing the anticipated impact of AI on iPhone sales.
In a recent note to investors, Wedbush highlighted Apple's strategic push into AI, expected to be a major theme during the second half of 2024. The firm believes that the AI enhancements introduced at the Worldwide Developers Conference (WWDC) could mark one of the most pivotal moments of the decade for Apple CEO Tim Cook. This move is seen as a catalyst for an iPhone 16 supercycle, prompting a wave of consumer upgrades and sparking a renaissance in growth.
Wedbush's analysis suggests that the exclusive AI features in the iPhone 16 will drive a long-awaited upgrade cycle extending into 2025. Despite current economic challenges in China, the firm anticipates a turnaround, predicting that June will be the last quarter of negative growth, with a positive shift expected in September.
Apple has been hinting at its AI ambitions for 2024, and all eyes are on WWDC, where the company is set to unveil iOS 18 and other operating system updates. Wedbush underscores the importance of this event, suggesting that Apple's full commitment to AI with the release of the iPhone 16 and its associated OS will be crucial in driving future growth.