Apple’s upcoming iPhone artificial intelligence features have Citi bullish on the stock as an AI trade.
Analyst Atif Malik moved Apple above Nvidia and Arista Networks as its top AI pick heading into 2025. Citi holds a buy rating and $255 price target on shares, indicating 12.6% upside from Wednesday’s close.
The broader generative AI phone market is expected to expand at a 78.4% compound annual growth rate between 2023 and 2028, Malik noted, making Apple’s AI phone features important.
Developer feedback on iOS18 beta AI features including the recently launched new photo feature to remove unwanted objects points to AI as a compelling upgrade for iPhone refresh next year. We expect iPhone 16 ‘It’s Glowtime’ product launch on Sep. 9 to further highlight [the] AI phone experience,” Malik wrote in a note on Thursday.
Shares advanced 2.1% in morning trading.