From Yahoo Finance UK’s Pedro Goncalves:
Apple (AAPL) shares rose to a record high during Monday’s trading session and were the number one trending ticker in pre-market trading after Morgan Stanley designated the stock as a “top pick” due to the company’s artificial intelligence (AI) push to boost device sales.
The iPhone maker last month unveiled Apple Intelligence, in a bid to lure customers to upgrade their devices to be able to use the new technology. The move came as Apple was seen as lagging behind Alphabet’s (GOOG) Google and Microsoft-backed (MSFT) OpenAI in the AI race.
“Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments,” Morgan Stanley analysts said.
They added that Apple could sell nearly 500 million iPhones over the next two years. The investment bank previously expected Apple to sell between 230 million and 235 million iPhones annually over the next two years and raised its price target to $273 from $216 based on the new projections.
The stock has an average rating of “buy” with a median price target of $217, and has outperformed the S&P 500 index this year, according to London Stock Exchange data.
Apple stock has risen more than 26% year to date and over 8% in the last month.
