Apple Stock Must Prove Local AI Demand is Real

Apple's stock price has climbed to $340 after a 10% increase over the past month. However, analysts still have a consensus target of $328 for the company's shares, which sits below the current share price. This indicates that reaching the $350 milestone may require more than just steady growth.

Apple is positioning its new Mac desktops as capable of running demanding artificial intelligence models locally, saving buyers from cloud provider fees. The upgrades in unified memory and bandwidth are significant, allowing a single computer to handle work that might otherwise go to a data center. Analysts argue that local AI gives buyers a concrete reason to pay up for more powerful Macs.

However, the consensus target on Apple's stock is below the current share price, making it necessary for analysts to revise their targets if they want to see the stock reach $350. Steady Mac sales, strong enough to push analysts into lifting the consensus above the current share price, are what Apple needs to sustain buying and prove that local AI demand is real.