JPMorgan analysts reiterated their Overweight rating for Apple (NASDAQ:AAPL) with a $265 price target, emphasizing that the company’s growth potential remains robust even amid uncertainty around the impact of its AI features. The analysis explored both scenarios: one driven by an AI-fueled volume upcycle and another focusing on Apple’s core strengths without relying heavily on AI.
As Apple moves into 2025, many investors are evaluating the stock’s ability to outperform the broader market, especially if product volumes show limited growth despite the integration of Apple Intelligence features. The analysts highlighted that while the bull case with AI hinges on an acceleration in product volumes, Apple’s appeal as an investment extends beyond AI-driven growth.
Without a significant volume boost from AI, Apple’s bull case relies on continued revenue and earnings growth, driven by its high-margin Services segment and steady iPhone sales. The stability in iPhone volumes and the maintenance of Apple’s premium valuation would allow the company to sustain investor confidence as more data emerges on consumer adoption of its AI features.
The analysts stressed that Apple’s diversified revenue streams, strong margins, and consistent execution position it as a reliable investment regardless of near-term AI adoption trends. With these factors in play, Apple remains an attractive option for investors seeking long-term growth potential in a premium technology stock.