On April 12th, Caixin News Agency reported that among the "tech giants" that had great success last year, besides Tesla, Apple was the worst performing large tech stock, with a decline of about 6% so far this year. Both the decline in demand and the intensification of competition have led to Apple's exceptionally difficult year in 2024.
However, JPMorgan Chase stated that this has not stopped the enthusiasm of hedge fund investors, who are waiting for future upward space. As for the reasons, the bank outlined that they are waiting for an AI led iPhone upgrade cycle, and the valuation premium is slowing down.
These same factors also support JPMorgan's own bullish view, with a target price of $210 per share. This means that Apple's stock price can still rise by about 20% compared to the current level. As of the close of the US stock market on Thursday, the stock rose 4.33% to $175.04.
Specifically, Xiaomo pointed out that investors' increasing interest in Apple mainly comes from expectations of the boosting effect of AI, just like the 5G upgrade that drove the stock price soaring in 2020.
Xiaomo predicts that the iPhone 17 will be Apple's first "artificial intelligence phone" and is scheduled to be launched in September 2025. Therefore, the bank expects iPhone sales to accelerate to 240 million units in 2026.
"Compared to the expected mild results for fiscal years 24 and 25, the product cycle will drive our projected revenue and profit growth of 14% and 21% respectively for fiscal year 26 (which is 7% higher than consensus expectations)," the bank wrote in its latest report.
In addition, Apple's stock price has fallen by 6% since the beginning of this year, which means it is currently at the low end of a series of P/E ratios, just like the momentum of the 5G cycle. However, despite raising its forecast for 2026, the bank still expects Apple to face downside risks in the near future and recommends investors to remain cautious.
Coincidentally. Dan Ives, a renowned strategist at the US investment bank Wedbush, also expressed his support for Apple this week. He said that Apple's stock is still likely to rise significantly this year and maintain its "outperform" rating and target price of $250, which is Wall Street's highest expectation for the stock.
In the latest report, he listed five bullish reasons, including expectations for AI. Wedbush predicts that Apple will announce its progress in generative artificial intelligence at the Global Developers Conference in June.