Apple hits all-time high as Morgan Stanley touts stock as 'top pick' for AI
Apple announced its Apple Intelligence push for iPhones and iPads at the Worldwide Developer Conference last month
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Apple shares rose to a record high during Monday's trading session after Morgan Stanley designated the stock as a "top pick" due to the company's artificial intelligence (AI) push to boost device sales.
Last month, Apple unveiled Apple Intelligence as a way to encourage customers to upgrade their devices to the latest models that have the new built-in AI functionality. The move came as Apple was seen as lagging behind Alphabet's Google and Microsoft-backed OpenAI in the AI race.
Apple shares reached $236.30 during Monday morning trading to give the company a market value of $3.62 trillion, the highest in the world. Although it has since pared back some of those gains, Apple's stock was up over 1.9% and trading around $235 a share as of early afternoon.
"Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments," Morgan Stanley analysts wrote.
APPLE TOPS MICROSOFT, REGAINS TITLE OF WORLD'S MOST VALUABLE COMPANY
![Apple Intelligence](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/07/931/523/Apple-Intelligence-0.jpg?ve=1&tl=1)
Apple's AI push propelled the tech giant's stock to hit an all-time high during Monday's trading session. (Jakub Porzycki/NurPhoto via / Getty Images)
The new Apple Intelligence technology is compatible with only 8% of iPhone and iPad devices and Apple currently has 1.3 billion units of smartphones in use by customers, the analysts noted.
They added that Apple could sell nearly 500 million iPhones over the next two years. The firm previously expected Apple to sell between 230 million and 235 million iPhones annually over the next two years and raised its price target to $273 from $216 based on the new projections.
Ticker | Security | Last | Change | Change % |
---|---|---|---|---|
AAPL | APPLE INC. | 226.59 | +0.08 | +0.04% |
Apple stock has risen more than 26% year to date and over 8% in the last month. It has an average rating of "buy" with a median price target of $217, having outperformed the S&P 500 index this year, according to LSEG data.
WHAT IS ARTIFICIAL INTELLIGENCE (AI)?
![Apple CEO Tim Cook](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/06/931/523/Apple-CEO-Tim-Cook.jpg?ve=1&tl=1)
Apple CEO Tim Cook said the company thinks "Apple Intelligence is going to be indispensable to the products that are already such an integral role in our lives." (David Paul Morris/Bloomberg via / Getty Images)
Industry analysts expect Samsung and Apple to lead a global smartphone market recovery this year amid the buzz around generative AI-enabled smartphones.
Apple sold 45.2 million smartphones globally in the three months ending in June, up from 44.5 million a year ago, although its market share fell to 15.8% from 16.6% in the same period, according to IDC data.
![Apple WWDC](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/06/931/523/Apple-WWDC-Attendees.jpg?ve=1&tl=1)
Apple Intelligence was unveiled during the Apple Worldwide Developers Conference at Apple Park campus in Cupertino, California, on June 10, 2024. (David Paul Morris/Bloomberg via / Getty Images)
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Reuters contributed to this report.