Apple’s place in the vaunted Magnificent Seven should be secure with iPhone sales and the AI theme buoying its stock. Some market analysts think AI will actually feed into more iPhone sales.
The iPhone maker is already rolling out its AI capabilities into its mobile devices. Dubbed “Apple Intelligence,” the AI platform features a plethora of features that consumers can tap in to, bringing the advanced technology to the masses.
In the meantime, investors are cheering the latest moves, and the stock’s performance is showing it. Apple was in a steady downtrend to start the year before jumping higher in May to bring its stock to an 25%-plus gain for the year.
The AI theme should continue, giving Apple the tailwinds it needs to keep its stock in the green while rate cuts should also add an additional boost. AI has been the persistent theme for big tech this year. And Apple’s foray into the space should keep investors appeased.
“Our thesis is that Apple has an opportunity the next few years to solidify itself as consumer’s Gen AI ‘basecamp’ of choice, just as it did for social media 15 years ago (with iPhone) and digital content consumption 20 years ago (with iPod),” said Loop Capital analyst Ananda Baruah. “Each of those trends were material stock catalysts and the basic math suggests that Gen AI has the opportunity to be the same.”
AI Can Strengthen iPhone Sales
Consumer sales will continue to be a key driver for revenue for the iPhone maker. As mentioned, other analysts are expecting Apple Intelligence to give iPhone sales a nudge higher.
“We expect that iPhone demand can strengthen as Apple Intelligence features begin to roll out with the iOS 18.1 update Oct. 28,” noted Rosenblatt Securities analyst Barton Crockett, who also maintained a buy rating for Apple’s stock.
For traders who want to continue riding the stock’s momentum, single-stock ETFs can provide opportunities to get extra exposure. In the case of the Direxion Daily AAPL Bull 2X (AAPU ), they can get twice the exposure to maximize their profit potential.
Of course, earnings reports and other news can always stifle a run higher. To that end, having the flexibility to profit during a downtrend is one of a trader’s most useful tools. In the case of Apple’s stock, traders can also play any short-term bearishness in the stock with the Direxion Daily AAPL Bear 1X Shares (AAPD ).
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