Apple shares expected to rise nearly 50% as it approaches its biggest day in a decade, says Wedbush

• Apple’s upcoming WWDC on June 10 represents its “most important event in a decade,” according to Wedbush analyst Dan Ives.

• Ives expects the company to reveal a series of AI features that will help power an iPhone 16 supercycle.

• Ives raised his Apple price target to $275, representing a potential upside of 47%.

Litter will be worth more than $4 trillion next year as it benefits from a massive iPhone 16 product “supercycle” that is driven by artificial intelligence, according to Wedbush analyst Dan Ives.

In a Thursday note, Ives raised his Apple price target to a high of $275, representing a potential 47% upside from current levels.

Ives said Apple’s upcoming WWDC event on June 10 represents the “most important event in a decade” as the company prepares for a series of AI announcements.

“Introducing AI to its important developer community and laying the groundwork to bring generative AI to the consumer starts with Apple, in our opinion,” said Ives, adding that he hopes the iPhone maker to announce a partnership with OpenAI.

“We also believe that Apple will lay the foundation for an AI App Store as developers build consumer apps on the AI ​​stack that Cook & Co. will showcase at WWDC and will lead to additional services growth in the coming years,” he said. Ives.

With all of these features likely to be integrated into the upcoming iPhone 16 launch in September, Ives said it could spark “a renaissance of growth” as more people upgrade their iPhones. Ives expects the iPhone’s refresh cycle could surpass the massive 270 million unit mark.

Ives is also encouraged by supply chain channel checks done by his team in Taiwan over the past week, which indicate that Apple’s April sales are about 2% above consensus.

“This adds to our long-held view that for Apple’s iPhone releases we will see an increase in the highly anticipated iPhone 16 upgrade cycle, which begins in September. We believe the current street numbers are somewhat conservative for FY25, which is a good setup for this next iPhone Cycle,” said Ives.

Read the original article at Business Insider