Apple stock jumps as Morgan Stanley names it ‘top pick’ for AI efforts, hikes target to $273

Apple stock surged 2% in Monday premarket trading after Morgan Stanley upgraded its stock to a “top pick” and raised its price target. The investment bank sees Apple’s AI advancements driving iPhone sales.

Reuters:
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In what was seen as a move to catch up with Alphabet’s Google and Microsoft-backed OpenAI, the iPad maker last month unveiled Apple Intelligence, luring customers to upgrade their devices to be able to use the new technology.

“Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments,” Morgan Stanley analysts said.

The new technology is compatible with only 8% of iPhone and iPad devices and Apple has 1.3 billion units of smartphones currently in use by customers, the analysts said, adding that the company could sell nearly 500 million iPhones over the next two years.

Morgan Stanley, which previously expected Apple to sell between 230 million and 235 million iPhones annually over the next two years, raised its price target on the company’s shares to $273 from $216.

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