Apple (AAPL) hit an intraday high on Tuesday as Wall Street analysts issued bullish outlooks for the stock ahead of the Apple Intelligence release.
Apple stock reached $237.49 on Tuesday before rising higher, surpassing its all-time high of $237.23 set on July 15th. As Nvidia’s price rally earlier in the week put iPhone sales in jeopardy, the stock’s rise has pushed it further ahead of Nvidia (NVDA), making it the world’s most valuable company. Manufacturer’s lead. Meanwhile, Nvidia (NVDA) fell about 6% on Tuesday due to trade tensions in the semiconductor sector.
Analysts from Morgan Stanley (MS), Bernstein, and Evercore ISI reiterated their buy ratings on Apple stock this week. Strong preliminary iPhone shipment data released by the International Data Corporation (IDC) showed strong demand for Apple’s previous smartphone models. Apple’s iPhone 16 launch also boosted sales.
“Despite the gradual rollout of Apple Intelligence in markets outside the U.S., Apple continues to grow in the upcoming holiday season,” Nabila Popal, senior director of data and analytics at IDC, said in a statement Monday. Probably.” Global iPhone shipments rose 3.5% year over year in the third quarter, according to IDC data released Monday.
The news comes amid concerns about weak demand for Apple’s iPhone 16 lineup. Wall Street analysts initially interpreted the shortening of iPhone shipping times as a sign. The idea was that if customers could easily get a new iPhone, there would be an oversupply of iPhones available for purchase compared to last year, Yahoo Finance’s Daniel Howley reported. Last week, Jefferies (JEF) lowered its rating on Apple stock from “buy” to “hold,” citing doubts about whether the company’s new AI-powered phones will meet expectations. However, Morgan Stanley said in a note to investors on Monday that Apple has been better prepared for the launch of the iPhone 16 than for past launches.
“Our supply chain checks show that in contrast to past cycles, where supply shortages continued to create an imbalance between supply and demand for the new iPhone Pro/Pro Max, this cycle Apple has asked suppliers to “This suggests that the company has requested parts inventories to be prepared earlier than the normal pattern to avoid this,” Morgan Stanley’s Eric Woodring wrote. “We believe one of the reasons iPhone lead times are shorter this time around than in recent cycles is because of better supply conditions.”
Apple on Tuesday released a new iPad mini with the ability to run Apple Intelligence, a suite of AI features. Apple will begin rolling out Apple Intelligence on October 28, but Morgan Stanley says a more significant update is expected in December and again in March 2025.
Despite a rocky start to 2024, including weak iPhone sales, layoffs, and clashes with antitrust regulators at home and abroad, Apple shares are up 31% year over year and 3.6% in the last week alone. . Analysts expect the stock to rise further to $245.40 over the next 12 months, according to consensus estimates compiled by Bloomberg.
Apple is scheduled to report earnings on October 31st, and Wall Street analysts tracked by Bloomberg expect profits to rise 9% from a year ago to $1.59 per share. About 40 analysts have recommended the stock as a buy, while 19 have given it a hold rating and two have recommended a sell, according to Bloomberg data.
Laura Bratton is a reporter for Yahoo Finance. X Follow her at @LauraBratton5.
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