Forecast for Apples Stock Price
Throughout much of 2024, Apple’s stock market performance deviated significantly from its usual trend. Initially, AAPL shares experienced a substantial decline and, even as a recovery began, they only managed to stay slightly in positive territory. The launch of Apple’s Vision Pro had minimal impact, and the tech giant even abandoned its electric vehicle aspirations in the first quarter of the year. This decision coincided with Chinese company Xiaomi unveiling its own electric vehicle, adding to Apple’s challenges.
However, the situation took a dramatic turn on June 12, when AAPL shares started soaring following the company’s announcement of a partnership with OpenAI, a renowned artificial intelligence (AI) firm known for creating ChatGPT. Despite some initial doubts and a brief market crash, the tide shifted dramatically on Tuesday’s market opening, propelling Apple’s blue-chip stock to new heights.
By the end of the trading session on June 13, Apple had reclaimed its position as the world’s largest company by market cap. This resurgence prompted Finbold to analyze what might lie ahead for AAPL.
Optimism among analysts about Apple’s future is widespread, evident not only in the stock market movements that pushed Apple’s price to $213.84 after a 9.99% 5-day surge but also in the flurry of positive analyst ratings revisions spurred by the OpenAI partnership announcement.
Since June 11, there have been over a dozen bullish price target updates, including upgrades from DA Davidson, Needham, JPMorgan, and Bank of America, all projecting significant growth for Apple. However, some analysts, like Germany’s DZ Bank, have maintained a more cautious stance.
Despite the overall optimism, not everyone is on board with the AI trend. Renowned analyst Harry Dent recently predicted a substantial crash for Nvidia, a key player in AI technology, suggesting that major tech firms like Apple, Microsoft, and Palantir could also be affected. Other analysts have echoed concerns about a potential bubble forming in the AI industry, with comparisons drawn to the Dot-com bust.
As the market continues to navigate the implications of the AI boom, investors are advised to exercise caution and consider the risks associated with speculative investments.
