All eyes will be on CEO Tim Cook as Apple’s (NASDAQ:AAPL) Worldwide Developer’s Conference (WWDC) kicks off tomorrow, June 10th. The head honcho has been teasing some major device and software updates, and the anticipation is palpable.
In contrast to its megacap tech peers, Apple has been somewhat coy regarding its AI intentions, leaving stock analysts, tech enthusiasts, and the owners of the 2.2 billion iOS devices around the world searching for clues.
Though nothing official has been announced, there have been reports that Apple will enter into a partnership with ChatGPT maker OpenAI. Additionally, Siri – the on-device personal helper – is expected to receive a major AI-related upgrade, while both the new iPhone 16 and iOS 18 releases are likely to usher in a number of AI features.
Among those watching closely is Wedbush analyst Daniel Ives, who foresees WWDC marking the beginning of an AI-driven growth surge for the iPhone and Services, shaping the narrative of the tech giant in the years to come.
“WWDC represents the most important event for Apple in over a decade as the pressure to bring a generative AI stack of technology for developers and consumers is front and center,” Daniel opined.
In addition to formally announcing the partnership with OpenAI, Ives believes that AAPL will open the floodgates for AI services growth in the coming years.
“As more developers build apps over the next year around AI this activity and monetization will happen within the Apple ecosystem to tap into its unmatched installed base globally,” Ives opined.
Furthermore, Ives anticipates that the iOS features will drive iPhone purchases, as exclusive AI features on the iPhone 16 will lead to a “renaissance of growth that will spark a massive overdue upgrade cycle into 2025.”
Overall, the bullish analyst predicts that Cook will “make history” for Cupertino tomorrow and therefore rates Apple shares as Outperform (i.e. Buy). His 12-month price target of $275 would represent a growth in value of ~40% from current levels. (To watch Ives’ track record, click here)
Ives’ objective appears to be on the bullish end of the spectrum; the consensus price target stands at $207.72, making room for one-year returns of just 5.5%. Apple’s Moderate Buy consensus rating is based on a mix of 22 Buys, 11 Holds, and a single Sell. (See AAPL stock forecast)
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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.
