Apple’s recent earnings announcement may not have provided specific updates on its artificial intelligence capabilities, but Wall Street analysts are optimistic about the company’s AI strategy. This optimism has been reflected in Apple’s stock performance, with shares rising nearly 7% after the earnings report. More substantial updates on Apple’s AI offerings are expected to be revealed during its Worldwide Developers Conference (WWDC) in June. Analysts are particularly focused on the AI features that will be included in the iOS 18 software.
Despite Apple being viewed as an AI laggard in recent months, analysts believe that the upcoming AI updates will drive stock performance higher. Bank of America analyst Wamsi Mohan increased his price target to $230 from $225, citing the AI features as a potential catalyst for institutional investors to increase their positions in the company. Evercore ISI analyst Amit Daryanani also expects the stock to climb higher due to the AI benefits and other positive catalysts, with an outperform rating and $220 price target on shares.
Morgan Stanley’s Erik Woodring expressed bullish sentiment after the earnings and revenue beat, as well as the generative AI announcements to come. He believes that Apple’s acceleration of investments in Generative AI will be a key driver of future growth. With an overweight rating on the stock, Woodring increased his price target to $216. Analyst Aaron Rakers from Wells Fargo highlighted Apple’s differentiated AI strategy, focusing on smaller models, partnerships, and device optimization. He reiterated his overweight rating and $225 price target on shares.
Apple’s management has expressed confidence in the company’s positioning to benefit from Gen AI, emphasizing a strong outlook for future growth. Analysts believe that Apple’s AI strategy, while unique compared to other tech giants, will be a key driver of future success. The upcoming AI announcements at WWDC are expected to be a positive catalyst for Apple’s stock performance.
Wall Street analysts remain bullish on Apple’s AI strategy and anticipate that the upcoming AI updates will drive stock performance higher. The focus on generative AI and differentiation in strategy compared to other tech giants have positioned Apple as a leader in the field. With confidence from analysts and management, Apple’s future in the AI space looks promising.