Apple (AAPL) shares are slightly higher in today’s trading after Wedbush reaffirmed its Outperform rating and boosted its price target from $300 to $325. Indeed, the firm, led by 4.6-star analyst Dan Ives, is predicting what it calls a “golden era of growth” for the tech giant heading into 2025.
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Wedbush expects Apple to see a multi-year iPhone upgrade cycle driven by AI, which it believes is being significantly underestimated at the moment. The launch of Apple Intelligence, a new AI tool with hundreds of apps in development, is expected to generate a multi-billion-dollar annual revenue stream for Apple’s Services division while fueling a wave of iPhone upgrades.
In addition, Ives highlighted iOS 18.2 as an important update that includes features like Genmoji, ChatGPT integration into Siri, and Visual Intelligence, which will lay the groundwork for Apple’s AI-powered future. When combined with next-gen chip architecture and future hardware releases, these advancements are set to improve Apple’s ecosystem and appeal to a broad consumer base. Wedbush even predicts that Apple will become the first company to hit a $4 trillion market cap.
Historic iPhone Super Cycle
Furthermore, when looking at the supply chain in Asia, Wedbush sees clear signs of a historic iPhone super-cycle, with around 300 million iPhones globally due for upgrades after four years. The firm forecasts that Apple could sell over 240 million iPhones in Fiscal Year 2025, which would make it the company’s most successful year yet. China alone is expected to drive significant demand, with an estimated 100 million iPhones ready for upgrades in 2025.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 19 Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 35% rally in its share price over the past year, the average AAPL price target of $244.39 per share implies 5.6% downside risk.
