For much of 2024, Apple’s (NASDAQ: AAPL) stock market movements stood in stark contrast with its usual performance as AAPL shares first declined substantially and – even as recovery started – remained only modestly in the green.
The release of Apple’s Vision Pro had relatively little impact, and the ambitious big tech firm even gave up on its electric vehicle (EV) dreams in the first quarter of the year. The timing became decidedly dire as, near the same time, the Chinese Xiaomi unveiled its own EV.
Things took a sharp turn on June 12, however, as AAPL shares began rocketing in the wake of the company’s announcement of a partnership with OpenAI – the artificial intelligence (AI) company best known as the makers of ChatGPT.
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Indeed, though initial hours following the announcement saw Apple crash and sparked some doubts about whether the AI boom is losing steam, Tuesday’s market opening brought a massive change as the blue-chip stock began rocketing.
Given that by the trading session’s end on June 13, Apple regained the crown of the world’s biggest company by market cap, Finbold decided to examine what may be next for AAPL.
Analysts overwhelmingly optimistic about Apple’s future
Along with the stock market movements – movements that saw Apple price today rise to $213.84 following a 9.99% 5-day surge – the deluge of recent analyst ratings revisions remains a major testament to the impact of the OpenAI partnership.
In fact, there have been more than a dozen price target updates – overwhelmingly bullish – since June 11 – the date of the announcement.
Of these, some of the most important came from DA Davidson – which upgraded AAPL from ‘neutral’ to ‘buy’ and raised the price target to $230 – Needham – which reiterated a ‘buy’ rating and a $220 target – and JPMorgan (NYSE: JPM) – which assessed Apple as a ‘buy’ with a 12-month stock forecast at $225.
Additionally, Bank of America (NYSE: BAC) also retained a ‘buy’ rating with a price target set at $230. Germany’s DZ Bank, however, stuck to a ‘hold’ rating.
Not everyone is aboard the AI train
The German banking giant is far from the only bear on the market. Indeed, while not directed explicitly at Apple, Harry Dent recently opined that Nvidia (NASDAQ: NVDA), the semiconductor giant playing a critical role in the AI boom, is set for a 98% crash.
Given that Dent considers that Nvidia will be a victim of an upcoming crash – and that the current state of the market, particularly with the frenzied AI enthusiasm, represents a ‘bubble of all bubbles’ – the prediction applies to other major firms such as Apple, Microsoft (NASDAQ: MSFT), Palantir (NYSE: PLTR), and many others.
Other analysts have also concluded that the AI industry has formed a massive bubble – a bubble that is likely to burst spectacularly – with Societe Generale’s (EPA: GLE) Albert Edwards, given he accurately predicted the Dot-com bust, perhaps offering the starkest of warnings.
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