Apple (NASDAQ:AAPL) has regained its position as the world’s most valuable company after something of a challenging period for the tech giant. Concerns around demand for its flagship product, the ubiquitous iPhone, and where the next leg of growth will come from, have been constant themes in recent times.
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But with 2025 at the gate, sentiment has started to pick up again, and that is entirely fitting, says AAPL permabull Wedbush analyst Daniel Ives, who thinks that given its strong prospects, the company is getting nearer to achieving another significant milestone. “We believe Apple is on pace to reach the $4 trillion market cap threshold by early 2025 and be the first member of this exclusive club,” the analyst said.
Ives believes demand for the iPhone 16 since its September launch has been “slightly ahead to generally in line” with global expectations. And going by recent checks within the Asia supply chain, upgrades to the iPhone 16 within Apple’s user base are showing positive trends leading up to Christmas, setting the scene for a strong holiday season.
Yet importantly, Apple Intelligence has not been launched so far in China or several other countries. Ives thinks the rollout will be around April, potentially coinciding with the announcement of a Chinese tech partner, which is anticipated to help with the launch in what is a crucial market for Apple.
With iOS 18.2’s launch, Ives expects Apple’s AI rollout over the next few months will mark the beginning of a new era for the company, as hundreds of AI-driven apps will be created by developers using the foundational elements of Apple Intelligence. “This will be a multi-year AI journey that will define the future for Apple with its next generation chip architecture, hardware releases, and future iPhone models built around the AI foundation that many consumers will ultimately embrace,” he further said.
Once again highlighting the signs seen across the Asia supply chain, Ives thinks this iPhone upgrade cycle could be a historic one. The analyst reckons that around 300 million iPhones around the world have not been upgraded in more than 4 years, which means Apple could sell more than 240 million iPhones in FY25 as this “AI-driven upgrade cycle” gains momentum, making it the highest iPhone sales year in Apple’s history.
It’s no wonder, then, that with such a bullish take, Ives has maintained an Outperform (i.e., Buy) rating on the shares to go alongside a Street-high $300 price target. Should the figure be met, investors will be pocketing returns of 18% a year from now. (To watch Ives’ track record, click here)
Ives’ bullish stance has the backing of 18 other analysts and with an additional 9 Holds and 2 Sells, the stock claims a Moderate Buy consensus rating. However, where the average target is concerned the doubters have more say; at $243.72, the figure suggests the stock is overvalued by 4%. (See Apple 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.
