Apple (NASDAQ:AAPL), unlike its other tech peers, hasn’t been vocal about its AI (Artificial Intelligence) initiatives. However, this doesn’t indicate that the iPhone maker is not investing in AI or strengthening its capabilities. The tech behemoth has been advancing well with its AI strategy and is a solid under-the-radar stock for investors seeking to ride the AI wave.
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Let’s delve deeper.
Apple Leveraging AI
During the Q4 conference call on November 2, Apple CEO Tim Cook said that AI and machine learning are the fundamental technologies behind its products. He added that when the company launched iOS 17, it introduced features like Personal Voice and Live Voicemail, with AI as the core driving technology behind these functionalities. Moreover, features like fall detection, crash detection, and ECG on its products underscore the crucial role of AI.
Although Apple incorporates AI-driven functionalities into its products, it refrains from explicitly branding them as such. Instead, Apple categorizes these capabilities according to the consumer benefits they provide, such as the ECG feature. However, it’s important to recognize that the underlying technology powering these features is AI and machine learning, underscoring Apple’s utilization of advanced AI technology in product development.
Highlighting Apple’s AI capabilities and solid opportunities ahead, Morgan Stanley analyst Erik Woodring maintained a Buy rating on Apple stock. Further, the analyst provided a price target of $210 on AAPL stock on November 3.
What Do Analysts Say About Apple?
Including Woodring, Apple stock has received 24 Buy and eight Hold recommendations for a Strong Buy consensus rating. Further, the average AAPL stock price target of $201.49 implies 8.1% upside potential from current levels.
Bottom Line
Apple faces challenges amid continued softness in hardware sales, particularly in the iPad and Wearables segments. Despite this, the company will likely benefit from robust Services revenue, an expanding user base of active devices, and heightened sales of premium iPhones, which will drive its top line and cushion earnings. Additionally, the promising growth prospects associated with AI provide a solid base for long-term growth and are reflected through the analysts’ Strong Buy consensus rating.
