Dan Ives, the Global Head of Technology Research at Wedbush Securities, has underscored a robust bullish stance on Apple’s (AAPL) stock performance during a recent discussion on CNBC, highlighting the company’s potential to capitalize on the consumer AI revolution. Ives expressed confidence in Apple’s ability to sell 240 million iPhones in fiscal 2025, driven by significant advancements in AI integration and a strong supply chain.
Ives’s analysis is based on supply chain checks from Asia, which indicate that Apple could be selling 5 to 10 million more iPhone units than Wall Street anticipates, setting the stage for a strong holiday season. This optimism is further fueled by Apple’s AI strategy, which he believes could add $30 to $40 per share to Apple’s stock value. Despite a consensus price target of $255 from other analysts, Ives has set a much higher target of $300, reflecting his confidence in Apple’s growth trajectory.
The discussion pinpointed the AI-driven upgrade cycle for iPhones, with Ives noting that out of Apple’s 1.5 billion iPhone users, 300 million have not upgraded their devices in over four years. This backlog of potential upgrades, combined with the introduction of Apple Intelligence, is seen as a catalyst for this super cycle. While the moderator questioned the focus on phones over other devices like laptops, Ives clarified that while laptops and iPads will also see AI enhancements, the iPhone is the initial and critical step in this technological evolution.
Ives also addressed the benchmarks for success, stating that selling 220 million iPhones would be a line in the sand, with 230 million being bullish and 240 million marking a significant triumph for Apple’s AI strategy. Achieving these numbers could lead Apple towards a $4 trillion market cap, according to Ives, who seems undeterred by bearish perspectives that fail to account for AI’s impact in their analyses.
Beyond Apple, Ives noted that this AI push could benefit other tech giants like Google (GOOG) and Meta (META) through increased consumer engagement and advertising opportunities. He envisions a broader ecosystem effect where companies like Roblox (RBLX) might also see advantages from this consumer-driven AI revolution.
This perspective from Ives not only underscores Apple’s potential in the AI space but also paints a picture of a tech sector entering what he describes as year three of a five to six-year bull market, with Apple positioned as a key player in this ongoing technological and economic narrative.
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