Apple (NASDAQ:AAPL) stock continues to be in the news. In a recent development, Challenges, a French news outlet, reported that Apple acquired a Paris-based artificial intelligence (AI) startup, Datakalab, on December 17, 2023. According to the report, Apple did not provide the financial terms of the deal, but the European Commission has been notified.
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This acquisition is an important step for the tech giant, as it has faced criticism for its slow progress in AI advancements. It is important to highlight that the iPhone maker is acquiring smaller companies to strengthen its AI capabilities.
Earlier this year, Apple acquired DarwinAI to enhance its AI capabilities. Moreover, Apple is exploring options to partner with Alphabet’s (NASDAQ:GOOGL) Google to license the latter’s Gemini AI model.
Apple Stock Is a Top Pick for 2024, Says Analyst
In a separate development, Bank of America Securities analyst Wamsi Mohan named Apple stock a top pick for 2024. The five-star analyst assigned a Buy rating on the stock with a price target of $225 per share, implying a 35.67% upside potential from current levels.
Mohan is upbeat about Apple’s long-term growth prospects. He expects revenues from the Services segment and margins to remain strong. However, the analyst acknowledges concerns regarding weak short-term demand, which could negatively impact Q2 financials.
Echoing similar sentiments, Wells Fargo analyst Aaron Rakers reiterated a Buy on AAPL stock on April 22. Rakers expects Apple’s Q2 to remain challenged. However, he suggests buying AAPL stock on weakness following the Q2 earnings release. Apple will announce its second-quarter financials on Thursday, May 2, 2024.
Is Apple a Buy, Hold, or Sell?
Apple stock is down about 14% year-to-date, reflecting weak iPhone demand and heightened competition in China. Further, concerns over its AI advancements remained a drag.
Apple stock has received 16 Buys, 11 Holds, and two Sell recommendations for a Moderate Buy consensus rating. Analysts’ average price target on AAPL stock is $199.85, which implies 20.51% upside potential from current levels.
