Apple Stock Jumps on Nvidia-Powered AI Hopes

Apple's stock jumped by approximately 1.4% to $311.18 on Tuesday morning, following a bullish AI scenario laid out by Rothschild & Co Redburn.

The analysts' case is based on Apple's potential shift in its AI strategy, which could involve using Nvidia's open models instead of relying heavily on Alphabet's Gemini technology.

A $400 price target would translate to roughly 29% upside from the current level, but this is not just speculation. Apple's investment case is already strong, with fiscal third-quarter revenue surging 16% to $109.4 billion, gross margin expanding to 50.1%, and earnings jumping 29% to $2.02 per share.

The company's Services segment delivered $30.7 billion in revenue, making it one of the strongest recurring-revenue engines in the technology sector.

While investors are optimistic about Apple's AI ambitions, the next major move will depend on whether the company can prove that AI drives more devices, services, and growth.