Wedbush analyst Daniel Ives expects Apple’s (NASDAQ:AAPL) market cap to hit $4 trillion within a year. Interestingly, Ives has a success rate of 83% on APPL stock. This implies that copying Ives’ trades and holding each position for one year would result in approximately 83% of your transactions generating a profit, with an average return of 16.7% per trade. (See the image below.)
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Ives has a Buy rating on Apple stock. His price target of $275 implies a 28.33% upside potential from the current levels.
AI Innovations to Drive Apple’s Market Cap
Ives highlights Apple’s advancements in artificial intelligence (AI) as a major growth catalyst. Speaking at the Seeking Alpha Investing Summit on Tuesday, Ives emphasized that Apple’s AI innovations are set to revolutionize its product lineup. The integration of AI into Apple’s offerings is expected to start a significant upgrade cycle, accelerating the company’s revenue growth and driving Apple’s market cap to $4 trillion within a year.
According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” analysts bullish on Apple stock expect the company to benefit from its AI system, Apple Intelligence. Further, Wall Street is bullish about its partnership with Microsoft (NASDAQ:MSFT)-backed OpenAI. The collaboration will enable Apple to integrate ChatGPT across its platforms.
Is Apple Stock a Good Buy?
Apple’s introduction of Apple Intelligence—a suite of AI-powered features for iOS—has been well-received, boosting its stock. The move aligns with the company’s strategy to enhance its ecosystem and will likely boost user engagement and loyalty.
Further, the iPhone maker Apple has discontinued its Apple Pay Later program and is targeting a broader customer base by offering more diverse and flexible payment solutions. Thanks to these positive developments, Apple stock is up about 11.6% year-to-date and currently sports a market cap of $3.29 trillion.
Apple stock has 23 Buys, 11 Holds, and one Sell recommendation for a Moderate Buy consensus rating. The analysts’ average AAPL stock price target is $210.86, implying 1.60% downside potential from current levels.
