Apple Inc (NASDAQ:AAPL) could become the world’s first company to reach a market capitalisation of US$4 trillion by late next year, according to analysts.
Expectations of resilient demand in America and China, as hundreds of millions of iPhones are upgraded, should buoy the stock, Wedbush analysts said.
Coupled with a lack of negative revisions from Apple following the release of the iPhone 15 in September, the bank argued a widespread bearish stance was wrong.
“We believe the ‘growth demise story’ of Apple being spun by bears is a dynamic we have seen it constantly over the past decade and this is just another chapter in that book,” Wedbush said.
“Apple is heading into a strong holiday season over the coming weeks that should translate into iPhone 15 growth that exceeds Street estimates for December.”
Some 100 million iPhones could follow an upgrade in China alone, the bank believes, with this stretching to 240 million globally.
Given this demand plays out and pushes sales of the iPhone 15, Apple should enjoy decent growth, analysts continued.
Wedbush has upped the firm’s share price target from US$240 to US$250, or 28% above Friday’s close.
“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,” Wedbush added.
“We believe Apple will be the first US$4 trillion market cap by the end of 2024.”