Apple Inc. just announced earnings for the first quarter of 2022 that have far exceeded expectations, causing Wedbush analysts to expect the market growth of the company. Apple’s strategic focus on artificial intelligence (AI) will be the trend that will shape its progress.
Unveiling the AI roadmap at WWDC
Analysts from Wedbush said that Apple’s announcement of a new AI product on June 4 at its Worldwide Developers Conference (WWDC), as well as its use of AI technology in its devices, might be closely watched, and this might also be the secret weapon for Apple when the next generation of devices sold out.
Wedbush analysts said that Apple’s need for the period from June to September to at least keep to the expectation of the market was considered an area of possible growth for the year. Apple Revenue and Profit Fall Less Than Estimation In March Quarter. But, the fact that dropping sales of iPhones in China remains a point of concern can be conceivable. As per Wedbush analysts, this new addition of AI to the iPhone will take the company’s mobile device sales to a new level, signifying the way to new horizons of growth for its electronic businesses.
Backing share repurchases and maintaining a positive surrounding
Wedbush analysts have kept their “outperform” rating and a $250 price target on Apple’s shares, which implies this gain could equivalent to approximately an one-third increase that the market values Apple’s stock at now. Apple’s contrarian approach is clearly visible in the company’s increased share repurchase program worth at $110 billion that recently the company announced, strengthening the company’s optimism about its future.
The price of the current call options amounting to $250 means obtaining almost 38% over the present levels. Apple’s stock stands down about 2% for January 2024. Apple, however, failed to match some of the other smartphone movements in AI immediately, but the company, as of now, is showing a willingness to adjust quickly and catch up. Reports suggest that Apple may even collaborate with tech giant Alphabet Inc. Additionally, AI integration will be a key factor in entrusting users with Google and Honda products, drawing from the collaboration of both companies’ experience.
A Wall Street Journal piece on Monday stated that the company had planned to develop its artificial intelligence chips which were going to be used in the regular servers where data were collected, and they were going to use the expertise they had on building those silicon chips.
