Technology giant Apple (NASDAQ: AAPL) has continued to record losses in 2024, trailing other magnificent seven stocks. The company is now back in the news once again, this time regarding legal issues surrounding allegations of antitrust violations, a factor that partly warrants close attention from investors in the company’s stock.
On a year-to-date basis, AAPL is down almost 8%, with the equity trading at $172.28 by press time. Notably, the stock that once made Apple rank as the world’s most valuable company with a market capitalization of above $3 trillion has been struggling to breach the $200 resistance.
AI predicts Apple stock
At the moment, investor interest is focused on how Apple will react in the coming days, considering that the company is under threat of losing its position as the second-ranked company to the fast-rising semiconductor giant Nvidia (NASDAQ: NVDA).
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Notably, Finbold looked to Anthropic’s Claude Opus, an artificial intelligence (AI) model deemed a superior tool to OpenAI’s ChatGPT, to gather insights into how Apple might trade by the end of 2024. Taking into account various factors influencing the market dynamics, the AI tool provided a comprehensive forecast for investors from both bullish and bearish perspectives.
According to Claude Opus AI, the most ideal price range for Apple stock at the end of 2024 lies between $180 and $210. However, it suggested that the stock could potentially reach a maximum of $230 by the year’s end, while also indicating a minimum threshold of $150.
Notably, the maximum price target represents an increase of about 21% from the current share price. At the same time, the minimum forecast reflects a drop of 12% from the current price.
Apple’s fundamentals
One of the factors that have impacted Apple stock in 2024 is the dwindling sales of its iPhone in China, with CEO Tim Cook visiting the region as part of reviving the company’s fortunes there. According to the AI tool, Cook’s visit, which coincided with the opening of a new flagship store in Shanghai, is anticipated to bolster the company’s position in this crucial market segment.
Additionally, the platform noted that Apple’s foray into the AI domain through potential partnerships with leading entities like Baidu holds promise for unlocking new avenues of growth and innovation. Notably, a section of analysts have in the past accused Apple of arriving late to the AI party.
On the flip side, Claude Opus AI noted that amidst concerns regarding the security integrity of Apple’s M-series chips for Macs, there exists a potential risk to the company’s reputation and consumer confidence, which could impact its stock performance.
Despite the turbulence faced by Apple in 2024, the AI tool acknowledged that Apple potentially benefits from some level of market stability. Notably, Apple is facing a Department of Justice (DOJ) lawsuit regarding antitrust issues for its smartphone market dominance.
Amid the filing of the case, Apple suffered short-term market volatility but has exhibited resilience, ending the past week on a high note, a sign of resilience.
In general, away from the AI projection, as the year progresses, market participants will closely monitor Apple’s strategic maneuvers, product innovations, and response to emerging challenges, all of which will play a pivotal role in shaping the actual trajectory of its stock price and overall financial performance.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
