Apple Stock: AI iPhone May Experience Upgrade Cycle Similar to 5G

Investors are eagerly anticipating the release of Apple’s rumored AI-enabled iPhone this fall, which could potentially lead to a rerating of the tech giant’s stock, according to a Wall Street analyst. Despite recent declines in Apple’s stock price, hedge fund investors are starting to show interest in the company, especially with the upcoming major upgrade cycle for the iPhone.

JPMorgan analyst Samik Chatterjee noted that the decline in Apple shares has created a more attractive valuation, making it a compelling investment opportunity. The introduction of AI features in the iPhone 16 is expected to be a key selling point for consumers, similar to the shift to 5G wireless networks with the iPhone 12.

While Chatterjee lowered his price target for Apple stock, he remains optimistic about the company’s long-term prospects. He believes that the major upgrade cycle for iPhones will likely occur with the iPhone 17 series in late 2025, as on-device AI technology becomes more prevalent.

Meanwhile, BofA Securities analyst Wamsi Mohan reiterated his buy rating on Apple stock, citing the potential for higher gross margins driven by a greater mix of services in the company’s portfolio. Overall, Wall Street analysts are bullish on Apple’s future growth potential, despite near-term challenges in hardware demand and services growth.

As investors eagerly await the release of the AI-enabled iPhone and the potential for increased gross margins, Apple stock continues to be a focus for both analysts and investors alike.