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Apple stock hits new record high on Apple Intelligence-driven iPhone upgrade cycle forecast

2024 June 12
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Apple Intelligence capabilities will drive a major AI upgrade cycle for Apple’s iPhone business, two Wall Street analysts said Wednesday. Apple stock surged to a new record high on the news.

Patrick Seitz for Investor’s Business Daily:

“AI functionality is likely to drive a multiyear upgrade cycle” for iPhones, BofA Securities analyst Wamsi Mohan said in a client note. He added that Wall Street’s current consensus estimates for iPhone sales are too low for the next two years.

Wedbush Securities analyst Daniel Ives concurred. He said Apple’s AI push “will catalyze a long-awaited super cycle” for iPhone sales.

Ives estimates that 270 million iPhones out of the 1.5 billion worldwide installed base have not been upgraded in more than four years.

With the move higher, Apple overtook Microsoft (MSFT) as the world’s most valuable company.

Apple shares have been on a tear since the company outlined its AI strategy, called Apple Intelligence, at its Worldwide Developers Conference on Monday.


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