Apple's $4 Trillion Ambition: AI and iPhone Supercycle Poised to Fuel Growth Renaissance

Wedbush Securities analyst Dan Ives has taken a bullish stance on Apple, suggesting that the tech giant is on the brink of a growth renaissance that could see its market valuation reach an unprecedented $4 trillion by early 2025. Ives' optimism is driven by the company's strategic advancements in artificial intelligence technology and a promising upgrade cycle for its flagship product, the iPhone.

In his latest report, Ives highlights the strong demand for the new iPhone 16 series, predicting that Apple's sales could soar during the holiday season. He anticipates a potential "supercycle" of upgrades, as approximately 300 million iPhones globally have not been updated in over four years. Ives forecasts that this could lead to a record-breaking 240 million iPhone units sold in the 2025 fiscal year, surpassing market estimates.

Ives emphasizes that Apple's venture into AI is still in its early stages, yet poised to revolutionize consumer engagement in key markets like China. He anticipates that the integration of AI technologies within Apple devices will drive significant growth, projecting the rollout of these systems in regions such as China by mid-next year. Apple is reportedly engaged in discussions with major Chinese tech firms to facilitate the deployment of its AI initiatives.

The impending growth in Apple's AI capabilities and its impact on the iPhone's appeal reinforces Wedbush's optimistic 12-month price target of $300 for Apple shares. Ives expresses confidence that Apple's strategic focus on AI and the anticipated success of the iPhone 16 will spark a resurgence in growth starting this December, positioning Apple for continuous success over the next 12 to 18 months.