Apple stock remained near record-high territory Tuesday after investment bank JPMorgan said the artificial intelligence trend will boost sales of Apple iPhones and services.
JPMorgan analyst Samik Chatterjee reiterated his overweight, or buy, rating on Apple stock. He also raised his price target to 245 from 225.
On the stock market today, Apple stock dipped 1.1% to close at 214.29.
Last Wednesday, Apple stock hit an all-time high of 220.20. That action occurred two days after it broke out of a cup base at a buy point of 199.62, according to IBD MarketSurge charts.
Chatterjee increased his forecasts for Apple iPhone sales after the company spelled out its strategy for AI at its Worldwide Developers Conference on June 10.
He sees AI features spurring an upgrade cycle starting with this fall's iPhone 16 series smartphones. The cycle is likely to peak after the iPhone 17 launch in late 2025, Chatterjee said.
Apple Stock News: iPhone Upgrade Cycle
The AI handset upgrade cycle should be similar to the 5G wireless upgrade cycle, he said.
Chatterjee predicted Apple will sell 244 million iPhone units in fiscal 2025, up 10% from expected sales of 222 million units this year. He sees iPhone sales reaching 268 million in fiscal 2026.
"In addition to the tailwinds in relation to the iPhone upgrade cycle, we are raising our estimates modestly for Services growth, led by expectations for higher Services monetization through third-party AI applications in the coming years," Chatterjee said in a client note.
Plus, the AI trend is likely to boost sales of iPad tablets and Mac computers, he said.
Apple stock has an IBD Composite Rating of 92 out of 99, according to IBD Stock Checkup.
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