Apple's Stock Receives Boost From BofA with AI and Vision Pro Prospects

On Thursday, Apple's (AAPL) stock experienced an uptick as BofA Securities expressed a newfound optimism in the tech giant, highlighting the potential in artificial intelligence and the buzz around its forthcoming Vision Pro headset as catalysts for increased sales.

BofA analyst Wamsi Mohan adjusted his stance on Apple's shares, shifting from neutral to buy, and uplifted his price target from 208 to 225.

The early market activities on the day reflected a positive response, with Apple's stock rising over 2% to hit 186.77.

Mohan's report to clients included projections of a 'stronger multiyear iPhone upgrade cycle,' spurred by customers upgrading to newer models to utilize upcoming generative AI features, expected to roll out this year and the next.

The launch of Apple's Vision Pro spatial computing headset is also anticipated to contribute to the company's sales momentum. The preorder phase commences on Friday, with the product expected to be available from February 2.

Apple's Outlook Amidst Recent Downgrades

Mohan also sees potential for growth in Apple's services, recognizing an opportunity for the company to better leverage its extensive user base.

Addressing the concerns surrounding the legal challenges faced by Apple, including antitrust procedures and patent disputes, Mohan believes these issues are manageable and should not detract significantly from the company's prospects.

The forthcoming release of the Apple Vision Pro and the integration of AI in iPhones are poised to create a positive shift in the market's sentiment towards Apple stock, according to Mohan.

This positive rating comes on the heels of earlier downgrades from investment institutions Barclays and Piper Sandler, which expressed apprehensions over the potential for sluggish iPhone sales.

Apple, AI, Stock