Apple Stock: The iPhone maker is poised to lead the consumer AI market.

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apple ( AAPL ) will be “a dominant force in consumer AI” thanks to its unique advantages, a Wall Street analyst said in a report. Apple stock rose on Friday.





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Oppenheimer analyst Martin Yang reiterated his outperform rating on Apple stock and raised his price target to 250 from 200.

In morning trading on the stock market today, Apple stock rose 0.5 percent to 215.21.

“We believe Apple's introduction of Apple Intelligence will position the company as a leader in consumer AI experience,” Yang said in a note to clients on Friday.

Benefit from Apple's Ecosystem

The deeper integration of artificial intelligence functions in the upcoming iPhone software release, iOS 18, allays concerns that Apple is falling behind its rivals in AI, Yang said.

Apple will benefit from its unique ecosystem that marries proprietary hardware and software, he said. In addition, Apple's AI will draw on users' personal context with an emphasis on data privacy, Yang said.

Apple announced its AI strategy, called Apple Intelligence, at its Worldwide Developers Conference on June 10.

“We suspect that WWDC has shown only a fraction of what Apple Intelligence can do in the future,” Yang said. “We expect Apple Intelligence to lead to even stronger integration between Apple's various hardware products. Better hardware integration enables Apple to integrate an iPhone, Mac, iPad, or Apple T After entering the ecosystem through V, Apple could create a wider and deeper moat.”

Apple stock was upgraded to buy.

On Wednesday, Rosenblatt Securities analyst Barton Crockett upgraded Apple stock to buy from neutral. It also raised its price target to 260 from 196. Apple stock hit a record high of 220.20 on June 12 before pulling back.

Apple's privacy-oriented approach to AI should resonate with consumers, Crockett said. Plus, Apple isn't spending billions of dollars on data center infrastructure to support its AI ambitions like its big tech rivals.

Apple stock has an IBD Composite Rating of 91 out of 99, according to IBD Stock Checkup.

Follow Patrick Seitz at X, first on Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.

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