Wall Street versus ChatGPT-4o: Apple stock’s 1-year price targets
Tech giant Apple (NASDAQ: AAPL) is experiencing a recovery in its stock price after a challenging period in 2024. The company faced obstacles such as slowing iPhone sales in China and a lawsuit from the United States Department of Justice, which affected investor confidence. However, the stock has now turned positive and is trading at $192.32 as of press time. It has gained 3.60% year-to-date, bouncing back from its low point of $165 in April.
To gain insights into the stock’s expected price over the next 12 months, Finbold consulted Wall Street analysts at TradingView and OpenAI’s advanced AI tool, ChatGPT-4o. According to 48 Wall Street analysts, the average price target for Apple stock over the next year is $202.72, indicating a 5.45% increase from its current price. This consensus reflects a cautiously optimistic outlook among financial experts.
Some analysts are even more bullish, predicting that Apple’s stock could reach as high as $275, a 43% increase from its current valuation. Conversely, the most pessimistic analysts forecast a potential drop to $125, indicating a possible 34% decline. Overall, the majority of analysts recommend buying the stock, with 20 suggesting a strong buy and 11 advising a buy. Only two analysts have issued a strong sell recommendation, highlighting confidence in Apple’s future performance despite some reservations.
ChatGPT-4o, while acknowledging the uncertainty in stock price predictions, identified several factors that could influence Apple’s stock price. The AI tool considered Apple’s history of innovation and strong market presence as indicators that have traditionally supported its stock price. Upcoming product releases, such as new iPhone models and advancements in augmented reality and artificial intelligence, are seen as key drivers of growth. Additionally, quarterly earnings, revenue growth, and profit margins are important indicators of financial health.
The AI platform also noted that broader economic trends, interest rates, inflation, geopolitical developments, global economic conditions, market share, and competitor strategies can all impact Apple’s operations and stock prices.
Based on these factors, ChatGPT-4o provided three price scenarios for Apple stock. In an optimistic scenario, where Apple continues its innovation and maintains strong financial health, the stock could surge between $220 and $250. In a moderate scenario with steady growth and no major disruptions, a 10-15% increase is plausible, placing the stock between $210 and $220. However, in a pessimistic scenario with significant challenges like economic downturns or supply chain issues, the stock might stagnate or decline, potentially trading between $180 and $200.
Meanwhile, Apple is showing positive growth in key metrics, which is likely to boost investor confidence. In the first quarter of 2024, the company’s revenue reached $119.6 billion, a 2% increase year-over-year, while EPS was $2.18, up 16% year-over-year, a record high. iPhone revenue also grew by 6% year-over-year to $69.7 billion, and Mac revenue increased by 1% year-over-year to $7.8 billion. These results bode well for Apple and are expected to support the stock amid growing competition.
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