Morgan Stanley Forecasts Strong iPhone Sales Driven by AI Innovation for Apple

Morgan Stanley has reaffirmed its position on Apple Inc. as the top investment pick, primarily driven by the expectation that artificial intelligence (AI) will significantly enhance iPhone sales. Analyst Katy Huberty raised the firm’s price target on Apple shares to $200 from the previous $195, citing that AI features will attract an increasing number of consumers. She stated, “Apple is uniquely positioned to leverage AI to enhance user experiences across its products and services, which will lead to sustained demand for iPhones.” Huberty’s optimistic outlook comes on the heels of other market analyses indicating that while some analysts predict a downturn in the tech stocks sector, Apple remains a robust investment due to its innovative capabilities and brand loyalty. Conversely, Seeking Alpha’s contributors highlight a contrasting viewpoint, labeling Apple the highest-conviction short for 2025, suggesting potential overvaluation in light of increased competition and market saturation. In a related segment on Fox Business, industry experts discussed how Apple’s persistent commitment to innovation and its integration of AI could safeguard its market position amidst challenges. These diverse perspectives underscore the mixed sentiment in the financial community about Apple’s future trajectory as it navigates a rapidly evolving technological landscape.