Citi Analysts Name Apple Stock as Top AI Pick for 2025 - iPhone 16 Launch Event on September 9th
In a recent report, Citi analysts have identified Apple stock as their top pick for artificial intelligence (AI) investments going into 2025, ranking it above Nvidia and Arista Networks. This comes as Apple Inc gears up to unveil its highly anticipated iPhone 16 lineup at the upcoming "It's Glowtime" product event on September 9th.
The event is expected to showcase groundbreaking updates, including the introduction of A18 chips using the N3E process with enhanced neural engine capabilities, improved camera and microphone features, and upgraded modems for the Pro models. Analysts believe that Apple will focus on how these hardware updates will support its Apple Intelligence features, set to launch later in the fall.
Looking ahead to the iPhone 17 release in the following year, Citi projects significant growth in unit sales, with a total of 228 million iPhone units expected in 2024 and 241 million in 2025. Analysts also highlight Apple's historical outperformance in the market leading up to iPhone release dates, showcasing a 5%-6% increase since 2016.
Furthermore, the recent CFO transition at Apple and positive feedback on iOS18 beta AI features suggest a strong outlook for future iPhone upgrades. Despite uncertainties surrounding the Google vs. DOJ antitrust case, Citi remains optimistic about Apple's strategic position, particularly with the Safari browser as a key value add.
In conclusion, Apple's innovative advancements in AI technology and continued product growth demonstrate its potential for strong financial performance in the coming years. Investors may want to consider Apple stock as a top pick for long-term growth and profitability in the evolving tech landscape.