Apple stock forecast: Will it touch highs of $250 in 2024?

While Microsoft remains on the up, touching highs of $450 at the time of writing, Apple stock is finding its footing after a pullback that saw it tumble from highs of $220, to lows of $207. As the AI arms race heats up, market analysts are scrutinising whether Apple can keep pace with the rapid advancements of tech giants Google and Microsoft and if its stock price can surpass its June all-time high to reach the $250 mark.

An AI partnerships perspective

Apple recently announced a deal with OpenAI that will enable millions of Apple users to access OpenAI’s service offerings. According to some analysts, this move, which will see Apple’s operating systems iOS, iPadOS, and macOS integrate ChatGPT’s language model later this year, marks a departure from Apple’s long-held closed ecosystem that has recently come under government scrutiny.

Under the deal, Apple’s Siri will gain the capability to surface answers from ChatGPT, while providing personalised recommendations and writing assistance across several apps. This enhancement is one of the deal’s highlights that could help boost revenue and engagement for the tech giant.

There’s also talk of the iPhone maker opening its doors to partnerships with more AI companies including some Chinese companies — in a market where Microsoft’s OpenAI chatbot is banned. This could further bolster the Apple Intelligence agenda, unveiled in early June, which seeks to differentiate the company from competitors by placing privacy at the core of its features.

A new product wave perspective

Beyond Apple Intelligence, which puts powerful generative models at the core of the iPhone, iPad, and Mac experience, the company is also looking to release new product offerings this September, according to MacRumors.

On the list of expected product releases are:

• iPhone 16: New Action and Capture buttons, vertically arranged cameras for spatial video, and a faster A18 chip.
• iPhone 16 Pro: Larger displays, Capture button, upgraded 48-megapixel Ultra Wide camera, and a 5x Telephoto camera on the smaller model.
• Apple Watch X: Redesigned, thinner body with magnetic band attachments, potential new health features like blood pressure and sleep apnea monitoring.
• New Apple Watch Ultra: Minor updates, likely focused on new health features.
• AirPods 4: Two models — one lower cost, one with Active Noise Cancellation. New design with shorter stems, upgraded USB-C charging case with built-in speaker for Find My.

These product offerings will likely generate significant interest from consumers later this year. Despite Apple’s successful diversification into the Apple Watch, AirPods, and services, the iPhone remains its most valuable product and the cornerstone of its revenue, contributing 52%. Direct iPhone earnings increased steadily from 2008 all the way to 2015, followed by up and down results in the subsequent five years. Revenues saw an uptick in 2021 and 2022 before experiencing a downturn in 2023.

Some analysts believe that Apple’s new AI-integrated iPhones could help reinvigorate sales and help the company overcome quarterly revenue downturns caused by choppy consumer spending and resurging tech rivals. This could in turn help the company’s share price.

Apple stock performance: Could shares reach $250 by end of 2024?

Investment firm Evercore’s analysts have revised their Apple stock target from $220 to $250, citing optimism about the public’s reaction to Apple’s new AI iPhone product offerings. At the time of writing, the stock has seen a slight recovery from its recent downturn and is hovering around the $211 price point.

Analysts note that sentiment remains bullish, with prices elevated above the 100-day moving average. The RSI, edging up past the 70 mark into overbought territory, suggests that a slowdown could be on the way within the bullish cycle. Buyers could face a hurdle at the 217 mark, with a further move north likely to face a hurdle at the $220 psychological barrier.

On the downside, prices could be held at the $207 psychological resistance level, with a significant drop likely to find support at the $193 psychological level, according to analyst projections.

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