Apple Intelligence will catalyze an iPhone supercycle; the AI party is just getting started – analyst
Apple 3.0’s Philip Elmer-DeWitt has published analyst Daniel Ives’ note to Wedbush Securities clients regarding Apple, Nvidia, AI, and more.
Philip Elmer-DeWitt for Apple 3.0:
We believe over the next year the race to $4 Trillion Market Cap in Tech will be front and center between Nvidia, Apple, and Microsoft. Nvidia’s GPU chips are in essence the new gold or oil in the tech sector as more enterprises and consumers quickly head down this path with the 4th Industrial Revolution well underway.
The AI Revolution starts with Nvidia and in our view the AI party is just getting started as its 9 pm in a party going till 4 am with the rest of the tech world now joining…
The holy AI grail we see for Apple is twofold looking ahead: 1) as Apple’s AI strategy is rolled out this will catalyze a long awaited supercycle in Cupertino with 270 million iPhones of the 1.5 billion worldwide in the golden installed base not upgrading their smartphones in more than 4 years based on our estimates, 2) developers will now build hundreds of apps on top of Apple’s AI stack in essence creating a new AI App Store over the coming years that will be the main way that consumers interact with generative AI. While Apple has been late to the game on AI with the biggest consumer installed base in the world, Cook & Co. have a unique advantage to monetize the AI Party in this 1995 Moment.
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MacDailyNews Note: Ives’ current 12-month Apple target price is $275, implying a $4 trillion market value within the next year, with a “Buy” rating on AAPL stock.
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