Wedbush analysts have recently projected that Apple Inc. (AAPL) stands to gain approximately $1 trillion in market capitalisation over the coming years, suggesting that stock investors might be overlooking significant investment opportunities. With an impressive installed base that exceeds 2 billion iOS devices and 1.5 billion iPhones, the analysts highlighted that approximately 300 million devices are ripe for upgrades, further enhancing Apple's potential for growth.
In their analysis, the Wedbush team posited, “We believe the success of iPhone 16 with a strong holiday season ahead will be the launching pad for a renaissance of growth in Cupertino over the next 12 to 18 months.” This bullish outlook follows the company's expanding services sector, which is now valued at $2 trillion, enhancing the monetisation capabilities of its extensive customer base.
Wedbush has set an outperform rating on Apple’s stock, providing a 12-month price target of $300—approximately 28% higher than its current trading price. Analysts expect that a robust response to the iPhone 16, coupled with holiday shopping trends, will initiate significant growth for the company.
Apple's position as a leader in the technology industry is further bolstered by its recent ventures into artificial intelligence. The firm anticipates that Apple's ambitious AI initiatives will be a defining factor for its future growth trajectory. Additionally, projections suggest that Apple could sell upwards of 240 million iPhone units in fiscal year 2025 as the next device cycle gains momentum.
With more consumers showing interest in the forthcoming Apple Intelligence software slated for new iPhone models, the company is positioning itself to potentially record the highest sales figures for iPhones in its history. Such success with AI integration could significantly elevate AAPL stock, according to Wedbush's insights.
In the competitive landscape of technology, Apple faces notable rivals including Nvidia, Alphabet, and Microsoft. The company reported revenues of $94.93 billion for its most recent quarter, reflecting a year-over-year increase of 6.1%. Furthermore, earnings per share (EPS) for this period were reported at $1.64, surpassing last year's figure of $1.46. While this performance exceeds that of both Microsoft and Alphabet, it still falls short of Nvidia's results.
As the competition heats up in the race towards achieving a $4 trillion market capitalisation, both Apple and Nvidia are seen as the frontrunners. However, Wedbush's analysis indicates that Apple may very well take the lead, much to the advantage of AAPL stock investors.
Source: Noah Wire Services