‘Get Ready For New Highs,’ Says Daniel Ives About Apple Stock

Apple (NASDAQ:AAPL) is once again the world’s most valuable company. After temporarily losing the title to Microsoft and briefly falling behind Nvidia, Apple’s stock has surged by 34% over the past 3 months, propelling the tech giant back to the top. The good news, according to Wedbush analyst Daniel Ives, is that the stock has more upside in it. Ives’ optimism is based on several factors. For one, going by recent Asia supply chain checks, the analyst is seeing “more signs of iPhone stabilization,” which heading into an “AI driven iPhone 16 super cycle,” is a very promising sign. Ives now thinks initial iPhone 16 shipments will be nearer the 90 million mark compared to the 80 million to 84 million range originally expected on the Street, representing double-digit year-over-year growth. “We strongly believe June will be the last negative growth quarter for China with a growth turnaround beginning in the September quarter,” the analyst went on to say. September will see the launch of the iPhone 16, which will represent the beginning of an “AI driven upgrade” that could translate to a “golden upgrade cycle.” With Apple Intelligence – Apple’s own AI platform – front and center, Ives thinks the Street is “starting to slowly recognize” how important Apple will be for the AI Revolution. Developers and leading tech companies like Meta and Google will probably have to integrate their AI models and technologies into Apple Intelligence. This is because Apple, with its all-encompassing iOS ecosystem, has exclusive access to a vast user base of 2.2 billion iOS devices and 1.5 billion iPhones worldwide. “We believe AI technology being introduced into the Apple ecosystem will bring monetization opportunities on both the services as well as iPhone/hardware front and adds $30 to $40 per share,” Ives summed up. To this end, Ives rates Apple shares an Outperform (i.e., Buy), along with a Street-high $275 price target, suggesting further gains of 19% are in store for the next year. (To watch Ives’ track record, click here) How does the rest of the Street see the next year panning out for Apple? Based on an additional 23 Buy recommendations, 10 Holds and 1 Sell, the stock claims a Moderate Buy consensus rating. That said, the average target stands at $223.57, indicating shares will remain range-bound for the foreseeable future. (See AAPL stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.