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Apple stock is poised to continue its record run in 2025 as it benefits from the continued rollout of its AI strategy, according to Wedbush analyst Dan Ives.
The analyst increased his Apple price target to a Street-high $325 from $300, representing potential upside of 26% from current levels.
"A golden era of growth for Cupertino is now on the horizon into 2025," Ives said of Apple in a note this week.
What's getting Ives so excited is Apple's AI strategy, which includes rolling out "Apple Intelligence" across its product lineup via staggered software updates.
"Rome wasn't built in a day and neither will Apple's AI strategy but the seeds of that strategy with Apple Intelligence are now forming and will transform the Apple consumer growth narrative over the coming years," Ives said.
As Apple's product lineup becomes more AI-capable, it should stimulate consumer demand, according to Ives, who estimates that 300 million iPhones are waiting to be upgraded.
Apple's new iPhone iOS 18.2 version was released earlier this month and included new AI features, including ChatGPT integration, the ability to create your own emojis, and an AI-based image generator.
The next big software update from Apple is an overhaul to its Siri assistant, which is supposed to make it more conversational. That's expected to be rolled out in early 2025.
"Our view is Apple's AI rollout over the next few months kick-starts a new era for Cupertino as ultimately hundreds of AI driven apps get built by developers on top of the building blocks of Apple Intelligence," Ives said.
According to Ives, that "new era" will last many years as Apple unveils next-generation chip architecture, new hardware releases, and future iPhone models built around an AI foundation.
Ives's supply chain checks indicate that consumers are warming up to Apple's AI strategy, suggesting that the current iPhone cycle could be "a historical one."
