Apple (NASDAQ: AAPL) stock has finally joined the artificial intelligence (AI) race.
Announcing a tie-up with OpenAI earlier this month, the iEverything giant said it will integrate ChatGPT artificial intelligence into future high-end models of its iPhones, iPads, and Mac computers. The stock is up roughly 9% already in response to the news, and according to wealth management firm Bernstein, Apple could be worth even more.
On Friday, Bernstein raised its price target on Apple stock to $240 a share, implying a 15% price gain over the next 12 months.
Is Apple stock a buy?
Bernstein sees four ways Apple could benefit from the AI megatrend:
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Because older iPhones won’t be capable of running on-device AI, people will need to buy newer, more expensive Apple devices. For every 1% acceleration in the upgrade cycle, Bernstein calculates Apple’s revenue will grow by 1.8%.
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Apple should be able to grow…
