Apple Remains The 'top Pick' At Morgan Stanley, Which Sees Ai Driving Iphone Sales

Apple (AAPL) remained Morgan Stanley's "Top Pick" heading into 2025, pinch nan Wall Street slope saying that nan tech giant’s artificial intelligence (AI) merchandise will thrust much iPhone upgrades by consumers.

"We are bullish connected ... Apple Intelligence starting to accelerate iPhone replacement cycles successful FY26," nan analysts wrote Friday successful their report.

Apple “is connected nan cusp of its largest instrumentality upgrade rhythm ever” because of nan motorboat of Apple Intelligence, which they said would consequence successful a record-breaking 2025/2026 fiscal-year rhythm “that is underappreciated by nan marketplace today," nan Morgan Stanley analysts wrote.

Morgan Stanley Sees Double-Digit Services Growth for Apple

The analysts besides said they expect Apple to prolong its services maturation astatine double digits and for nan company's gross margins to expand.

The analysts stuck pinch their “overweight” standing connected nan tech firm, noting that they stay bullish connected its net powerfulness driving nan banal value to their existent target of $273 moreover arsenic nan banal hovers adjacent its all-time high.

Shares of Apple were were down astir 0.5% precocious Friday astatine $246.76 aft closing Thursday astatine a record high of $247.96.