Amid growing anticipation for Apple's integration of artificial intelligence in its iPhones, JP Morgan has adjusted its price target for Apple shares from $225 down to $210. This revision is driven by uncertainties about when the tech giant will roll out its AI-powered iPhones and a dip in iPhone demand in China.
The investment firm likens the expected rollout of AI in iPhones to the previous surge in upgrades triggered by the introduction of 5G technology. However, they predict that significant AI hardware upgrades, which could spark a major upgrade cycle, might not appear until the iPhone 17 Pro expected in 2025.
According to JP Morgan, while Apple has confirmed that AI features will start appearing with iOS 18 in 2024, the transformative AI hardware enhancements might only arrive with the later models. They suggest that these enhancements will likely include more robust RAM and advanced Neural Processing Units to fully leverage AI capabilities.
Despite these projections, JP Morgan notes potential challenges, such as slowing demand for other Apple products and ongoing regulatory issues impacting Apple’s Services division. These factors contribute to a cautious investment approach to Apple’s stock in the short term.
In contrast, Wedbush Securities maintains a bullish stance with a $250 price target, driven by their expectation of strong demand for the AI-equipped iPhone 16 Pro, highlighting the divergent views among analysts regarding Apple's future prospects in the AI era.
