Apple has been relatively quiet about its efforts in artificial intelligence (AI) development, setting itself apart from other tech companies. However, this does not mean that the company is not investing in AI or strengthening its capabilities. The tech giant […]
Apple has been relatively quiet about its efforts in artificial intelligence (AI) development, setting itself apart from other tech companies. However, this does not mean that the company is not investing in AI or strengthening its capabilities. The tech giant is making strides in its AI strategy and proving to be a stable choice for investors looking to join this trend.
To delve deeper into the topic, Apple CEO Tim Cook stated during a conference call in the fourth quarter that AI and machine learning are foundational technologies behind their products. When the company launched iOS 17, it introduced features such as Personal Voice and Live Voicemail, with AI being the key technology behind these functionalities. Additionally, features like fall detection, crash detection, and ECG on their products highlight the crucial role of AI.
Apple categorizes AI based on the benefits it provides to consumers. However, the underlying technology is AI and machine learning. Although specific details have not been disclosed, Tim Cook mentioned that they are working on generative AI. He emphasized Apple’s commitment to AI, stating that the company is actively investing in this technology and focusing on integrating AI innovations into their products.
Erik Woodring, an analyst at Morgan Stanley, highlighted Apple’s AI capabilities and the opportunities they present. He maintained an “Overweight” rating for Apple stocks and set a target price of $210 for AAPL shares.
What are analysts saying about Apple?
Apple stocks have received 24 “Buy” recommendations and eight “Hold” recommendations, indicating a strong consensus for buying. The average target price of AAPL shares at $201.49 suggests a 8.1% potential growth from the current level.
Apple faces challenges due to continued weakness in hardware sales, particularly in the iPad and wearables segments. However, the company is likely to benefit from strong service revenues, an expanded user base of active devices, and increased sales of premium iPhones, driving revenue growth and impacting earnings. The promising growth perspective associated with AI provides a solid foundation for long-term growth and is reflected in the strong analyst consensus.