Throughout the majority of 2024, the stock market performance of Apple (NASDAQ: AAPL) took an unexpected turn as AAPL shares initially saw a significant decline and, even during the recovery phase, only managed to make modest gains. The introduction of Apple’s Vision Pro had minimal impact, and the ambitious tech giant even abandoned its electric vehicle (EV) aspirations in the first quarter of the year, coinciding with the unveiling of Xiaomi’s own EV in China.
However, everything changed dramatically on June 12 when AAPL shares began to soar following the announcement of a partnership with OpenAI, the renowned artificial intelligence (AI) company behind ChatGPT. Despite some initial doubts and a temporary crash in Apple’s stock price, Tuesday’s market opening brought about a remarkable turnaround as the blue-chip stock surged.
By the end of the trading session on June 13, Apple had reclaimed its position as the world’s largest company by market capitalization. This prompted Finbold to explore what lies ahead for AAPL.
Analysts are overwhelmingly positive about Apple’s future, evident in the recent surge in stock price to $213.84 after a 9.99% increase over a 5-day period. Following the OpenAI partnership announcement on June 11, there have been numerous bullish price target updates from analysts, with DA Davidson upgrading AAPL to ‘buy’ with a price target of $230, Needham reiterating a ‘buy’ rating with a $220 target, and JPMorgan assessing Apple as a ‘buy’ with a 12-month stock forecast of $225. Bank of America also maintained a ‘buy’ rating with a price target of $230, while Germany’s DZ Bank remained cautious with a ‘hold’ rating.
Despite the overall optimism, not everyone is on board with the AI trend. Renowned analyst Harry Dent has forecasted a significant crash for Nvidia, a key player in the AI industry, which could have implications for other major firms like Apple, Microsoft, and Palantir. Some analysts have warned that the AI industry may be in a massive bubble that is likely to burst, with Societe Generale’s Albert Edwards, known for predicting the Dot-com bubble burst, providing one of the most ominous warnings.
In conclusion, while the recent developments have been positive for Apple, investors should remain cautious and consider all potential risks before making investment decisions.
