Apple Stock May Be Underpriced Ahead of AI-Fueled Growth
Apple has reported its ninth consecutive earnings beat and shares have increased by 23% this year. Despite this, the stock may still be undervalued for what's to come.
The tech giant posted $109.42 billion in fiscal Q3 revenue and a 22% iPhone growth rate. Shares are up 9.3% over the past month but have hit a ceiling near the $344.27 52-week high due to margin anxiety.
Tim Cook warned of memory pricing increases, which could impact Apple's margins. However, analysts' conservative price targets may not be reflective of the company's current growth and potential for future AI-driven revenue.
The author argues that reaching $450 per share in 2027 is achievable with a few key catalysts: the successful launch of Siri AI, normalization of memory costs, and sustained iPhone growth. However, a China revenue reversal could derail this scenario.