Apple Stock Can Reach a $4 Trillion Market Cap in 2025, According to 1 Wall Street Analyst
Consumer tech giant Apple (NASDAQ: AAPL) has had a pretty good year, with its stock up roughly 19% as of Sept. 11, outperforming the broader market. However, like most tech stocks, September has thus far not been friendly to Apple, which has seen its stock fall approximately 3.5% this month.
Recently, Apple debuted its new iPhone 16 during an event held at its headquarters, and the phone will feature a new artificial intelligence (AI) software called Apple Intelligence. The news has prompted one prominent Wall Street tech analyst to boost his already bullish outlook on the stock. Let's take a look.
The most successful iPhone launch in company history?
Prior to his recent note, Wedbush tech analyst Dan Ives already had an outperform rating on Apple and a $285 price target. Now, Ives is reiterating his bullish outlook and boosting his price target to $300, suggesting 36% upside from Apple's current stock price of $221, as of Sept. 11.
Ives is excited about the new iPhone rollout and thinks it could be the company's most successful iPhone release in company history, as well as a "launching pad for the consumer AI revolution globally." In addition, Ives believes a new phase of customer interaction and personalization with their phones is now underway with Apple Intelligence, which will ultimately spark a "renaissance of iPhone growth" and push Apple to a $4 trillion market cap.
Apple is not necessarily a cheap stock at 33x earnings, but it has traded more expensively in recent years and served investors very well. While predicting how impactful AI will ultimately be to consumers is always a bit of a fickle task, Apple has a strong track record of leading the way on consumer tech innovation, so Ives' excitement is certainly worthy of investors' attention.
Over the last three quarters, more than half the total sales came from the iPhone, so obviously the product is one of, if not the most important for the company. If the iPhone 16 is as good as Ives thinks, it could certainly boost sales and the stock significantly.
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.
