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Apple is on track to be the first $4 trillion company by the end of 2024, Wedbush says

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2024 will present the “golden opportunity” for investors to own Apple stock, Wedbush strategists said.REUTERS/Brendan McDermid

  • Apple is set to notch a $4 trillion valuation by the end of next year, Wedbush predicted.

  • Strategists raised their price target for the iPhone maker to $250, implying a 30% upside.

  • The tech giant is also poised to have a strong holiday season in 2023 on the iPhone 15, the firm said.

Apple is on track to notch a $4 trillion valuation by the end of next year — the first-ever company on the stock market to do so, according to Wedbush.

The investment research firm raised its price target for Apple to $250 a share from $240 previously, implying 30% upside from Monday’s price of around $192 a share.

Meanwhile, the company’s market cap is currently at $2.99 trillion, after notching a historic $3 trillion valuation earlier this year.

“We believe Apple will be the first $4 trillion market cap by the end of 2024 given the pace of growth and monetization we estimate for Cupertino over the next year,” Wedbush strategists said. “We believe Apple is heading into a strong holiday season over the coming weeks that should translate into iPhone 15 growth that exceeds Street estimates for the December quarter.”

The firm estimated that Apple could produce as many as 240 million iPhone 15 units in 2024, thanks to a strong upgrade cycle that’s expected in the US and China. Demand for about 100 million new iPhones will stem from China alone, strategists predicted. That puts Apple in a good position to reap profits in China, despite ongoing geopolitical tensions and competition from Chinese smartphone maker Huawei.

Revenue from the services side of the company is also increasing. That part of Apple’s business could be worth as much as $1.6 trillion, Wedbush estimated, which will be a “key dynamic” for the stock’s value in the near-future.

Combined with strong iPhone sales, that could make 2024 a “golden opportunity” for investors to own Apple stock, strategists added.

“With a growing iPhone business again into 2024 on the heels of what we view as a new tech bull market beginning, Apple is poised to have a strong year ahead,” strategists said. “In a nutshell, Apple is in the Rock of Gibraltar-like strong position heading into 2024 with the stage set for a renaissance of growth in Cupertino.”

The investment research firm has been a long-running bull on Apple stock, particularly within the context of the huge rally mega-cap tech has seen in 2023. That rally will likely continue, thanks to around $1 trillion of AI spending that’s bound to take place over the next decade, Wedbush previously estimated.

Read the original article on Business Insider

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