Dan Ives, a renowned strategist at the US investment bank Wedbush, and his team recently stated that Apple's market value is expected to reach $4 trillion by the end of next year, making it the first company in the US stock market to reach a valuation of $4 trillion.
The bank has raised Apple's target stock price from $240 to $250, which means the company's stock price has increased by 30% from Monday's level of approximately $193.18. Meanwhile, the current market value of the company is approximately $3 trillion.
Ives stated that given estimates of Apple's performance growth rate next year, we believe that by the end of 2024, Apple will become the first company with a market value of $4 trillion. We believe that Apple will have a strong holiday sales season in the coming weeks, and the sales growth of iPhone 15 should exceed Wall Street's expectations for the December quarter.
They estimate that due to strong smartphone upgrade cycles expected in the United States and China, Apple may produce up to 240 million iPhones by 2024. Strategists predict that China alone will generate demand for approximately 100 million new iPhones.
At the same time, the company's revenue from services is also increasing. Wedbush estimates that the value of this part of Apple's business could reach up to $1.6 trillion, which will be a key driving force for Apple's stock price in the near future.
Strategists added that service industry revenue, combined with strong iPhone sales, could be a "golden opportunity" for investors to hold Apple stocks in 2024.
They said, "After we believe a new technology bull market begins, the iPhone business will grow again, and entering 2024, Apple is expected to have a strong year. In short, entering 2024, Apple is in a strong position like the Gibraltar Rock (some call it the 'Hercules' pillar), and Apple will usher in a revival of growth."
For a long time, this investment bank has been optimistic about Apple's stock, especially against the backdrop of a significant rise in large technology stocks in 2023. Wedbush previously estimated that this rebound may continue due to approximately $1 trillion in artificial intelligence spending over the next decade.