Apple (AAPL) stock received a Buy rating from Wedbush’s four-star-rated analyst Daniel Ives, highlighting its deal with Alibaba (BABA) as a key driver for the company’s growth in China. Meanwhile, Ives kept his price target steady at $325, predicting an upside of 36.54% from the current trading levels. Year-to-date, AAPL stock is down nearly 5%, despite having risen 36% over the past 12 months.
In context, Apple announced its partnership with Alibaba in early February, aiming to integrate Chinese tech giant’s AI (artificial intelligence) model, Qwen 2.5, into iPhones sold in China.
Ives Sees Growth Potential for Apple in China
Ives believes Apple’s AI rollout has faced a major hurdle due to the absence of an approved strategy for China. Nonetheless, he stated that now Apple has finally secured its China AI partner with Alibaba partnership and expects this to boost iPhone sales starting in the June quarter.
Furthermore, Ives estimates that around 100 million iPhones in China are due for an upgrade, creating a major growth opportunity for Apple. While the company has lost market share to Huawei over the past year, Wedbush expects Apple’s AI-powered features in the upcoming iPhone 16 and iPhone 17 (set for a September launch) to help Apple regain its position in the market.
Overall, he highlighted that Apple’s collaboration with Alibaba will play a crucial role in its expansion in China, especially in advancing its AI initiatives. In the long run, Wedbush expects 25% of the global population to access AI via an Apple device in the coming years.
Is Apple Stock Price a Buy?
Overall, Wall Street has a Moderate Buy consensus rating on AAPL stock based on 18 Buys, 11 Holds, and four Sells assigned in the last three months. The average Apple share price target of $250.48 implies a 5.23% upside potential.
