Apple shares hit a record high after Morgan Stanley raised its price target and called the company a “top pick” due to its efforts in artificial intelligence. Experts predict significant growth in sales of Apple devices in the coming years.
Image source: BoliviaInteligente/Unsplash
In an attempt to catch up with rivals like Alphabet (Google’s parent company) and Microsoft, Apple last month unveiled its “Apple Intelligence” artificial intelligence service, prompting many customers to upgrade their devices to use the new technology. In the process, Apple’s shares, which have risen nearly 20% since the start of the year, quickly hit $236.30, pushing the company’s market capitalization to $3.62 trillion — the highest in the world at the moment.
“Apple Intelligence is a clear catalyst for increased iPhone and iPad shipments,” Morgan Stanley analysts said. They noted that the new technology is compatible with only 8% of existing iPhones and iPads, while Apple has 1.3 billion smartphones in use. The company could sell about 500 million iPhones over the next two years, they said. notes Reuters.
Financial firm Morgan Stanley, which previously expected Apple to sell between 230 million and 235 million iPhones annually over the next two years, has now raised its price target on the stock from $216 to $273, recommending the company as a strong investment pick.
Experts say Apple’s investment in artificial intelligence could be a key driver of sales growth and the company’s position in the smartphone market in the coming years, and expect both Apple and Samsung to lead the recovery of the global smartphone market this year.
If you notice an error, select it with your mouse and press CTRL+ENTER.
