Morgan Stanley's recent report labelled Apple (AAPL) as their "top pick" until the year 2025. This is largely due to the anticipation that the tech titan's artificial intelligence (AI) product will pave the way for a substantial surge in iPhone upgrades. The analysts noted in their report that they foresee Apple Intelligence as a key driving factor in accelerating iPhone replacement cycles in the fiscal year 26.
They also predicted that Apple is gearing up for the largest device upgrade cycle in its history. This monumental event is set to occur due to the imminent launch of Apple Intelligence. The analysts pointed out that this massive shift has been severely overlooked by current market trends.
Besides this, the report forecasted the tech company to continue their services' double-digit growth. The analysts also envisage that the gross margins of Apple will witness considerable expansion in the coming years.
Despite the tech firm's stock hovering near its all-time high, the analysts maintained their "overweight" rating on the firm. They expressed continued optimism regarding the company's capacity to drive the stock price to their current target point of $273, primarily fuelled by its earnings power.
Even though Apple's shares saw a minor drop of around 0.5% on Friday, landing at $246.76 from Thursday's record spike of $247.96, the industry experts remain unperturbed and confident in their predictions for the company's future.