Apple stock surges to record highs on AI outlook

Apple’s stock price surged on Monday to a record high, extending gains for the second straight session amid expectations of a new surge in sales and profits as Apple integrates AI technology into the iPhone 16. 

Apple’s stock is up over 20% this year, bringing the company’s value to $3.62 trillion and making it the world’s most valuable publicly trading company once more. 

And several Wall Street analysts have \upgraded Apple’s stock price target even further for this year. 

The Price

Apple’s stock price rose 2.9% today to $237.23, a record high, with a session-low at $233.3. 

At Friday’s close, Apple’s stock was up 1.3%, resuming gains after a short hiatus on Thursday. 

Apple’s stock gained 1.9% last week, the third weekly profit in a row on strong purchasing sentiment.

Value Surge 

Apple added nearly $300 billion to its market value since announcing plans to integrate AI technology into the new iPhone 16, which investors are now betting will lead to a surge in purchases. 

Apple Intelligence 

Apple has called the new technology “Apple Intelligence”, and it’s a reworking of the digital assistant Siri, with a suite of new services for its current base of phones estimated at 2.2 billion worldwide. 

Apple is trying to catch up to Google and Microsoft-backed Open AI with the new tech, while convincing clients to upgrade their phones to use the new tech.  

Upgrading the Stock

Several analysts recently upgraded Apple’s target price by $130 to $300 due to the new AI technology announcements. 

Apple now has a chance to become a serious player and beneficiary in the AI sector. 

Morgan Stanley’s Upgrade 

Analysts at Morgan Stanley expect the new AI technology to boost Apple’s sales considerably, with potential sales of 500 million iPhones in the next two years. 

That’s a massive upgrade from Morgan Stanley’s previous forecasts of 230 million-235 million iPhones of total sales in the next two years, with the bank upgrading the price target to $273.